问题如下：
Zimt AG presents its financial statements in accordance with US GAAP. In 2007, Zimt discloses a valuation allowance of $1,101 against total deferred tax assets of $19,201. In 2006, Zimt disclosed a valuation allowance of $1,325 against total deferred tax assets of $17,325. The change in the valuation allowance most likely indicates that Zimt’s:
选项：
A.deferred tax liabilities were reduced in 2007.
B.expectations of future earning power has increased.
C.expectations of future earning power has decreased.
解释：
B is correct.
The valuation allowance is taken against deferred tax assets to represent uncertainty that future taxable income will be sufficient to fully utilize the assets. By decreasing the allowance, Zimt is signaling greater likelihood that future earnings will be offset by the deferred tax asset.
valuation allowerrence不是从1109增加到1305了吗？怎么是减少？
