Knowledge Check 01 Assume Jackson Company determines that it is more likely than not that a portion of its deferred tax asset ultimately will not be realized and records on entry to increase its valuation allowance. Which of the following describes how the company's financial statements will be impacted? (Select all that apply.) Check All That Apply The amount of income tax expense reported in the income statement will decrease The amount of income tax expense reported in the income Mement will increase Total assets reported in the balance sheet wil decrease Total assets reported in the balance sheet will increase