Which of the following statements best describes a valuation allowance as it relates to accounting for income taxes?

Question

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A valuation allowance is a contra account to deferred tax assets only. It is used to reduce the carrying value of deferred tax assets when it is considered more likely than not that some or all of the deferred tax assets will not be realized in future periods due to uncertainty about their timing or realization.

Which of the Following Statements Best Describes a Valuation Allowance