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If management decides that the deferred tax asset should be reduced by a valuation allowance, this indicates they believe it is more likely than not...

If management decides that the deferred tax asset should be reduced by a valuation allowance, this indicates they believe it is more likely than not that:

Tax rates will change in future years

The deferred tax liability will exceed the deferred tax asset in future years

They will not have enough taxable income in future years to realize the full tax benefit

They will not have enough accounting (book) income in future years to realize the full tax benefit

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They will not have enough taxable... View the full answer

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