10 At the end of Year 3, Wissa Co. had a $19,000 deferred tax asset and...
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10" At the end of Year 3, Wissa Co. had a $19,000 deferred tax asset and a related valuation allowance of $4,000. During Year 4, $5,000 of the deferred tax asset was realized. Due to future anticipated operating losses, management determined on December 31, Year 4, that it is more likely than not that only $8,000 of the deferred tax asset would be realized in the future. What should Wissa report as the balance in the valuation allowance account at the end of Year 4? A. $0 B. $4,000 C. $6,000 D. $8,000 10" At the end of Year 3, Wissa Co. had a $19,000 deferred tax asset and a related valuation allowance of $4,000. During Year 4, $5,000 of the deferred tax asset was realized. Due to future anticipated operating losses, management determined on December 31, Year 4, that it is more likely than not that only $8,000 of the deferred tax asset would be realized in the future. What should Wissa report as the balance in the valuation allowance account at the end of Year 4? A. $0 B. $4,000 C. $6,000 D. $8,000
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