Twitter is an online news and social networking company. In its 2021 annualreport, the company reported deferred tax assets totaling $398 million. The company also reportedvaluation allowances totaling $200 million. What would motivate Twitter to have a valuation allowancealmost equal to its deferred assets?

A deferred asset is a cost that has occurred but has not yet been reported. It will be reported as…

Twitter is an online news and social networking company. In its 2021 annu ported deferred tax assets totaling $398 million. The company also reporte otaling $200 million. What would motivate Twitter to have a valuation allo erred assets?

Twitter is an online news and social networking company. In its 2021 annu ported deferred tax assets totaling $398 million. The company also reporte otaling $200 million. What would motivate Twitter to have a valuation allo erred assets?

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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Question

Twitter is an online news and social networking company. In its 2021 annual
report, the company reported deferred tax assets totaling $398 million. The company also reported
valuation allowances totaling $200 million. What would motivate Twitter to have a valuation allowance
almost equal to its deferred assets?

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