问题如下：
Lily is an expert in analyzing manufactoring industry. She finds that Firm C has a history of continous losses and a large amount of inventories whose book value is much higher than market value. As Firm C also has a very large deferred tax asset, Lily says, " I will do nothing to reduce the deferred tax asset. As the difference between taxable and pretax income is temporary, the deferred tax asset will be smaller in the future." Is her statement correct?
选项：
A.Incorrect. She should record a deferred tax liability to offset the temporary difference.
B.Incorrect. She should recognize a valuation allowance.
C.Correct.
解释：
B is correct.
It is difficult for Firm C to generate profit from inventory. Based on its history, Firm C probabily suffer the losses in the future. Thus, its deferred tax assets is unlikely to be realized and should be offset by a valuation allowance.
这个题目的意思是不是由于持续亏损，且有大量的存货，也就是说sales不大好，所以预计未来还会亏损。如果是一个初创企业，前期持续亏损，但是业务快速增长，存货应该周转的比较快，不会大量积压，所以对未来是否仍会亏损预计主要是看存货这一块吧？
