Which of the following situations will most likely require a company to record a valuation allowance on its balance sheet（）
A. To report depreciation, a firm uses the double-declining balance method for tax purposes and the straight-line method for financial reporting purposes.
B. A firm with deferred tax assets expects an increase in the tax rate.
C. A firm is unlikely to have future taxable income that would enable it to take advantage of deferred tax assets.
参考答案：C
解析：
A valuation allowance is a contra account (offset) against deferred tax assets that reflects the likelihood that the deferred tax assets will never be realized. If a firm is unlikely to have future taxable income, it would be unlikely to ever use its deferred tax assets, and therefore must record a valuation allowance.