Which of the following types of evidence indicate that a valuation allowance is needed to reduce the deferred tax asset?

Question

Quizplus · Accepted Answer

Short carryback or carryover periods indicate that it is less likely that the deferred tax asset will be realized in the future, so a valuation allowance is needed to reduce it. Choices A, B, and C are not relevant factors in determining the need for a valuation allowance.

Which of the Following Types of Evidence Indicate That a Valuation