An entity must establish a valuation allowance for a deferred tax asset whenever: A. Evidence indicates that the entity will not realize the tax benefits. B. There is a change during the year in the entity's deferred tax assets. C. The entity plans to change the character of a taxable amount from ordinary income to capital gain in order to utilize the benefit. D. New legislation changes the applicable tax rate expected to apply in the periods in which the entity expects to realize the deferred tax asset