On December 31, Year 1, a publicly traded entity identified a tax position that will result in a tax benefit of $100,000 that qualifies for measurement and should be recognized. The entity has considered the amounts and possible outcomes of the position held by examining them as follows:

possible estimated result	individual probability of occurrence	cumulative probability of occurrence
$100,000	20%	20%
30,000	35%	55%
10,000	45%	100%
	100%

What amount should be recognized as a tax benefit as of December 31 of year 1?

Answer rating: 100% (QA)

To determine the amount of tax benefit to be recognized we need to use the expected value app... View the full answer