Question: D. When a deferred tax asset is recognized, adjustments are made to the valuation allowance as well. An uptick in the valuation allowance corresponds to

D. When a deferred tax asset is recognized, adjustments are made to the valuation allowance as well. An uptick in the valuation allowance corresponds to a reduction in the deferred tax asset. If there is a rise in income tax expense, it leads to a decrease in net income for that period. On the other hand, an increase in net income causes a decrease in the valuation allowance

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