Using the information provided in E17-23, prepare the current year journal entry for the tax provision using the expected value approach.

Data from Exercises 23

Samuel Fishman Furs, an IFRS reporter, took an aggressive tax position and deducted $380,000 on its current tax return. This type of deduction has been challenged by tax jurisdictions in the past when examining the tax returns of other firms in the industry. The company is subject to a 30% income tax rate and does not report any book-tax differences. Fishman reported income equal to $785,000, prior to taking the $380,000 tax deduction. This amount is reported on both Fishman’s income tax returns and on its financial statements. After meeting with tax consultants, management determined that it is not probable that the taxing authorities will accept the tax position taken. The potential tax benefit will be assessed by using the following estimated outcomes and probabilities of occurrence.