Question: CPA prepares a tax return for Client. Client's return includes a deduction that is contrary to an extant Revenue Ruling. Because of a recent court

CPA prepares a tax return for Client. Client's return includes a deduction that is contrary to an extant Revenue Ruling. Because of a recent court decision in another circuit that is favorable to the deduction, CPA believes that there is a 60 percent chance that the deduction would prevail if the Client's return was audited. What potential preparer penalties would be applicable if the deduction was challenged

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