Which of the following would be considered negative evidence in determining whether Gratiot Corporation needs to record a valuation allowance for some or all of its deferred tax assets?

a. The company forecasts future taxable income because of its backlog of orders.

b. The company has a cumulative net loss over the current and prior two years.

c. The company has unfavorable temporary differences that will create future taxable income when they reverse.

d. The company had a net operating loss carryover expire in the current year.

e. Both (b) and (d) constitute negative evidence in assessing the need for a valuation allowance.