A Valuation Allowance Is Recorded Against a Deferred Tax Asset

A valuation allowance is recorded against a deferred tax asset when:

A) It is more likely than not that the deferred tax asset will not be realized in the future.
B) It is highly likely the deferred tax asset will not be realized in the future.
C) It is remote the deferred tax asset will not be realized in the future.
D) It is probable that the deferred tax asset will not be realized in the future.