Question

Knollcrest Corporation has a cumulative book loss over the past 36 months. Which of the following statements best describes how this fact enters into the valuation allowance analysis? A. The book loss is considered sufficient negative evidence that a valuation must be recorded.B. The book loss is considered negative evidence that must be evaluated along with other evidence as to whether a valuation allowance should be recorded.C. The book loss is not considered negative evidence because it relates to book income and not taxable income.D. A cumulative book loss is considered negative evidence only after a period of 60 months.

Answer 1

It would be 60 months