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8 If tangible negative evidence exists, positive evidence may be necessary to overcome that evidence and to support a conclusion that a valuation allowance is
8 If tangible negative evidence exists, positive evidence may be necessary to overcome that evidence and to support a conclusion that a valuation allowance is not needed. Which of the following normally would not be considered as negative evidence? 1. A history of operating loss or tax credit carryforwards expiring An excess of appreciated asset value over the tax basis of 2. the entity's net assets 3. Losses expected in early future years (by a presently profitable entity) 4. Unsettled circumstances that, if unfavorably resolved, would
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