Question

Which of the following items is not considered evidence in determining if a valuation allowance is necessary? A. A cumulative book loss over some period of time.B. Management projects future taxable income based on a backlog of signed contracts.C. A net operating loss expired unused in the current year.D. Management can implement a tax strategy to create future taxable income, but it will be detrimental to the future profitability of the company.

Answer 1

Answer:

Management can implement a tax strategy to create future taxable income, but it will be detrimental to the future profitability of the company.- D.