th e tax effects of temporary differences that give rise to deferred tax assets and 1557293

Th e tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows ($ thousands):

If the valuation allowance had been the same in 2007 as it was in 2006, the company would have reported $115 higher:

A. net income.

B. deferred tax assets.

C. income tax expense.