这道题干涉及到很多到题目了，但是看不懂，所以涉及到的所有题都做错了

问题如下：

A company’s provision for income taxes resulted in effective tax rates attributable to loss from continuing operations before cumulative effect of change in accounting principles that varied from the statutory federal income tax rate of 34 percent, as summarized in the table below.

Over the three years presented, changes in the valuation allowance for deferred tax assets were most likely indicative of:

选项：

A.decreased prospect for future profitability. B.increased prospects for future profitability. C.assets being carried at a higher value than their tax base.

解释：

Solution

B is correct. Over the three-year period, changes in the valuation allowance reduced cumulative income taxes by $1,670,000. The reductions to the valuation allowance were a result of the company being “more likely than not” to earn sufficient taxable income to offset the deferred tax assets.