The following Trueblood case is recommended for use with this chapter. The case provides an excellent opportunity for class discussion, group projects, and writing assignments. The case, along with Professor's Discussion Material, can be obtained from the Deloitte Foundation at its website: www.deloitte.com/us/truebloodcases.

Case 07–6: Graphic Inc.

This case gives the students an opportunity to understand that judgment is involved in determining whether a valuation allowance should be recorded on deferred income tax assets. Students will identify and weigh positive and negative evidence to assess whether or how much of a valuation allowance should be recorded against an entity's deferred income tax assets.