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What is the effect of the valuation allowance entry

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Reference no: EM132873202

Question 1: When a company with taxable income finds that it is more likely than not that its deferred tax asset will not be realized , what is the effect of the Valuation Allowance entry on the financial statements?

a) equity increases
b) The tax provision decreases
c) The tax provision is not affected
d) assets decrease

 

Reference no: EM132873202

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