Marshall Company, Inc. opened business in 2016. The company's revenue has grown steadily. but they have accumulated losses of $550,000 in their first four years of being in business. In 2020. Marshal Company, Inc. appears to have turned things around. The reported taxable income of $55,000. In addition to its deferred tax asset relating to the net operating loss carry- forward, Marshall Company has a deferred tax asset relating to product warranties and a deferred tax liability related to depreciation. a Since the company has not been profitable in the past, Marshall Company established a full valuation allowance for their deferred tax assets. However, with improving profitability, Marshall's management believes they can now reduce the valuation allowance or even eliminate it. Some of the questions they have considered are future taxable income, sources of income ired to remove a valuation allowance utilization of tax planning strategies REQUIRED Prepare a letter to Marshall Company's president, John Marshall discussing the valuation allowance and utilizing tax planning strategy Marshall Company's address is 123 Fifth Ave Huntington, WV 25702. The body of the letter should follow the FIRAC format: Marshall Company, Inc. opened business in 2016. The company's revenue has grown steadily. but they have accumulated losses of $550,000 in their first four years of being in business. In 2020. Marshal Company, Inc. appears to have turned things around. The reported taxable income of $55,000. In addition to its deferred tax asset relating to the net operating loss carry- forward, Marshall Company has a deferred tax asset relating to product warranties and a deferred tax liability related to depreciation. a Since the company has not been profitable in the past, Marshall Company established a full valuation allowance for their deferred tax assets. However, with improving profitability, Marshall's management believes they can now reduce the valuation allowance or even eliminate it. Some of the questions they have considered are future taxable income, sources of income ired to remove a valuation allowance utilization of tax planning strategies REQUIRED Prepare a letter to Marshall Company's president, John Marshall discussing the valuation allowance and utilizing tax planning strategy Marshall Company's address is 123 Fifth Ave Huntington, WV 25702. The body of the letter should follow the FIRAC format