Response to the following questions:
1. When does a corporation establish a valuation allowance? Give an example of positive evidence that might be used to justify that a valuation allowance is not needed.
2. List the steps necessary to measure and record a corporation's current and deferred income taxes.
3. Describe an operating loss carryback. List the two conceptual questions concerning accounting for a carryback.
If possible, please give examples to better understand your response.