a company s provision for income taxes resulted in effective tax rates attributable 1557297

A company’s provision for income taxes resulted in effective tax rates attributable to loss from continuing operations before cumulative effect of change in accounting principles that varied from the statutory federal income tax rate of 34 percent, as summarized in the table below.

Over the three years presented, changes in the valuation allowance for deferred tax assets were most likely indicative of:

A. decreased prospect for future profitability.

B. increased prospects for future profitability.

C. assets being carried at a higher value than their tax base.