NO.PZ2016012102000188
问题如下:
If D.C company had a deferred tax asset of 1.6 million and a deferred tax liability of 1.4 million on its books in December 31, 20X7, but established a valuation allowance of 0.4 million in December 31, 20X8( all other things being equal). What was most likely happened during the 20X8?
选项:
A. It is likely that 0.4 million of the deferred tax liability's value will never be reversed.
B. It is likely that 0.4 million of the deferred tax asset's value will never be reversed.
C. It is likely that 0.4 million of the deferred tax asset's value will be a temporary difference.
解释:
B is correct.
It is likely that 0.4 million of the deferred tax asset's value will never be reversed, because of earning power is decrease and DTA is not be realized, so DTA will decrease by 0.4 million, its treated as valuation allowance.
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