QUESTION 5 1 points Microsoft Corporation Tax Dept determined that $2,450,000 of the research credit on its
Question:
QUESTION 5 1 points Microsoft Corporation Tax Dept determined that $2,450,000 of the research credit on its current year tax return was uncertain, with a 30% likelihood to be sustained on audit. Management made the following assessments of the company's potential tax benefits: Potential Estimated Tax Benefit Individual Probability of Being Realized (%) Cumulative Probability of Being Realized (%) 10% 2,450,000.00 10% 2,000,000.00 20% 30% 1,250,000.00 40% 70% 750,000.00 30% 100% a. What amount will Microsoft claim on its tax return? b. What is the amount tax of benefit reported that influence book tax expense?
Taxation Of Individuals And Business Entities 2019 Edition
ISBN: 9781259918391
10th Edition
Authors: Brian C. Spilker, Benjamin C. Ayers, John Robinson, Edmund Outslay, Ronald G. Worsham, John A. Barrick, Connie Weaver