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Company A purchased Company B in a nontaxable transaction and company A will file a consolidated tax return that include company B. Before the acquisition,

Company A purchased Company B in a nontaxable transaction and company A will file a consolidated tax return that include company B. Before the acquisition, company A has a$1,000 NOL DTA with a $1,000 valuation allowance. After acquisition, company B has a$600 NOL DTA and a $600 DTL. There are no other sources, other than the $600 DTL, of taxable income for realizing the benefit of the consolidated group's DTAs. What amount of valuation allowance should be reflected in the final consolidated financial statements?

A. $0

B. $600

C. $1,600

D. $1,000

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