Existing sufficient taxable permanent differences, which will result in taxable income, is one piece of evidence to support a more likely than not criteria.

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Sufficient taxable permanent differences indicate that a company will have taxable income, but they do not directly support the more likely than not criteria for recognizing deferred tax assets. The more likely than not criteria is primarily concerned with the company's ability to realize deferred tax assets based on future profitability, not just current taxable income.

Existing Sufficient Taxable Permanent Differences, Which Will Result in Taxable