A company has a $10,000 deferred tax asset related to a net operating loss

A company has a $10,000 deferred tax asset related to a net operating loss

A company has a $10,000 deferred tax asset related to a net operating loss. If the company expects to have taxable income in the future, the asset is:

A. Fully recognized

B. Partially recognized

C. Not recognized

D. Written off

Answer: A

Explanation: ASC 740-10-30-1: If "more likely than not" future taxable income exists, the entire asset is recognized.