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The Wolf Group recorded a deferred tax asset of $50,000 due to a book - tax difference in warranty liabilities. Management has assessed that it
The Wolf Group recorded a deferred tax asset of $50,000 due to a book - tax difference in warranty liabilities. Management has assessed that it is more likely than not that the firm will not realize 20% of the deferred tax asset. After recording the valuation allowance, Wolfs net income will and assets will O A. increase by $10,000; decrease by $50,000 OB. decrease by $10,000, decrease by $10,000 O C. decrease by $50,000, increase by $10,000 OD. increase by $10,000; increase by $10,000
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