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Question - ABC Inc. began business in 2019 and reported sales revenue of $1,000,000 and expenses of $600,000, resulting in a $400,000 net loss for 2019. The company has not yet received cash for its sales, nor has it paid cash for its expenses incurred during 2019. It also has no permanent or temporary difference. The statutory tax rate is 35%. What is the valuation allowance amount, if any, should the company record at the end of 2019?
A. $70,000
B. $140,000
C. $0
D. Not enough information.
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