Under ASC 740, a deferred tax asset for a net operating loss carryforward is recognized if

Under ASC 740, a deferred tax asset for a net operating loss carryforward is recognized if

Under ASC 740, a deferred tax asset for a net operating loss carryforward is recognized if:

A. The company has future taxable income

B. The company has past taxable income

C. The company has a history of tax losses

D. The company has a positive cash flow

Answer: A

Explanation: ASC 740-10-30-1: Deferred tax assets are recognized only if it is "more likely than not" that future taxable income will be available to utilize the loss.