11. XYZ Corp. recently reported a valuation allowances on deferred tax assets of $477,000. If instead, the company had increased the allowance to $2 million, what impact would this change have on net income for the year (show your work)? ro duo It would decrease net income by $1,523,000 It would increase net income by $1,523,000 It would not affect net income, which is calculated net of any valuation allowance It is not possible to determine because total deferred tax expense is not known 12. If it is more likely than not that future benefits from a deferred tax asset will not be realized in its entirety, a/an revenue is established. valuation allowance is established. expense allowance is established. equity account is increased