Cadillac Square Corporation determined that $1,000,000 of its domestic production activities deduction on its current year tax

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Cadillac Square Corporation determined that $1,000,000 of its domestic production activities deduction on its current year tax return was uncertain, but that it was more likely than not to be sustained on audit. Management made the following assessment of the Company's potential tax benefit from the deduction and its probability of occurring.
Potential Estimated Individual Probability Cumulative Probability
Benefit (000s) of Occurring (%) of Occurring
$340,000............................40............................40
272,000..............................25............................65
170,000..............................20............................85
0......................................15...........................100
What amount of the tax benefit related to the uncertain tax position from the domestic production activities deduction can Cadillac Square Corporation recognize in calculating its income tax provision in the current year?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  answer-question

Taxation Of Individuals And Business Entities 2015

ISBN: 9780077862367

6th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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