NO.PZ2016012102000146
问题如下:
PZ company reported the following table:
Which of the following statements is the best describes about the firm's expected earnings?
选项:
A.Earnings are expected to increase.
B.Earnings are expected to decrease.
C.Earnings are expected to remain relatively stable.
解释:
B is correct.
The valuation allowance account is a contra- or reduction account to deferred tax assets that the firm judges is unlikely to be realized. In this case, which means the value of DTA reduces $1200. . Therefore, the expected earnings of the firm are expected to decrease.
上课说到valuation allowance下降,代表未来profit上升。
所以这道题可否不需要计算,直接看到valauation allowance下降,所以earning也是decrease