All of the following are evidence to support recognition of a deferred income tax benefit except:
A) It is acceptable industry practice to recognize the deferred income tax benefit.
B) There are existing taxable temporary differences to absorb the loss.
C) An excess of fair value over the tax basis of the enterprise's net assets in an amount sufficient to realize the deferred income tax asset.
D) A strong earnings history suggesting that losses are not expected to continue.

Question

Quizplus · Accepted Answer

Industry practice alone is not sufficient evidence to support the recognition of a deferred income tax benefit. Recognition should be based on specific financial circumstances and future taxable income projections.

All of the Following Are Evidence to Support Recognition of a Deferred