Assume Company A and Company B each had a balance in deferred tax assets of $250,000. However, Company A has a valuation allowance related to the deferred tax asset of $200,000 while Company B has a valuation allowance of $5,000. What can you infer about Company A and B based upon this information? Company A and Company B have a similar amount of total assets. Company B is more likely to have suffered recent net losses as compared to Company A. Company B reserved 98% of its deferred tax asset balance. The realizability of the deferred tax asset of Company A is uncertain. Next >