A Valuation Allowance Is Recorded Against a Deferred Tax Asset

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

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