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A valuation allowance would exist as a contra account to the deferred tax assets if it is: O"probable" that all of the gross amount of the deferred tax assets is expected to be realized O"probable" that only a small portion of the deferred tax assets are expected to be realized "more likely than not" that only a portion of the gross amount of the deferred tax assets is expected to be realized. O"more likely than not" that the entire amount is to be realized.

A valuation allowance would exist as a contra account to the deferred tax assets if it is: O"probable" that all of the gross amount of the deferred tax assets is expected to be realized O"probable" that only a small portion of the deferred tax assets are expected to be realized "more likely than not" that only a portion of the gross amount of the deferred tax assets is expected to be realized. O"more likely than not" that the entire amount is to be realized.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A valuation allowance would exist as a contra account to the deferred tax assets if it is: "probable" that all of the gross amount of the deferred tax assets is expected to be realized O "probable" that only a small portion of the deferred tax assets are expected to be realized "more likely than not" that only a portion of the gross amount of the deferred tax assets is expected to be realized. O"more likely than not" that the entire amount is to be realized.
Transcribed Image Text:A valuation allowance would exist as a contra account to the deferred tax assets if it is: "probable" that all of the gross amount of the deferred tax assets is expected to be realized O "probable" that only a small portion of the deferred tax assets are expected to be realized "more likely than not" that only a portion of the gross amount of the deferred tax assets is expected to be realized. O"more likely than not" that the entire amount is to be realized.
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