CVS Health Corporation showed 2019 net income from continuing operations of $6,631 million. The following is an excerpt from a disclosure note to CVS Health’s 2019 financial statements:

Required:
1. Did CVS’s valuation allowance increase or decrease during 2019? By how much?
2. If CVS had not adjusted its valuation allowance during 2019 (the allowance remained the same), what would have been its income from continuing operations?

3. All else equal, would CVS need to assert that it would be more profitable or less profitable in future years in order to justify the change that occurred in its valuation allowance during 2019?

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Deferred income tax assets: Lease and rents Inventory Employee benefits Bad debts and other allowances Retirement benefits Net operating loss and capital loss carryforwards Deferred income Insurance reserves Investments Other Valuation allowance Total deferred income tax assets Deferred income tax liabilities: Investments Depreciation and amortization Total deferred income tax liabilities 2019 $ 267 23 191 294 47 480 36 430 451 (374) $ 1,845 $ (289) (8,850) $(9,139) 2018 $ 277 28 243 243 130 529 104 467 11 242 (520) $1,754 (9,431) $(9,431)