Metro builds and operates traditional shopping malls. It holds a $25 million deferred tax asset relating to credit carryforwards at the state, local, and Federal levels. No valuation allowance exit. The shopping mall industry finds itself in hard times due to the loss of anchor stores and the increase in online shopping activity by consumers. Review various sources in the press that discuss how these problems arose and what some proposed solutions might be. Metro's business plan for the next three years includes:

The conversion of store space by new tenants (e.g., theater, gyms, religious groups), none of which are likely to produce the profit levels lost from the stores they replace, and

The sale of several malls at depressed prices.

Summarized your thoughts as to the need for Metro to establish a valuation allowance against its deferred taxes assets.