Solution-What amount of the tax benefit related to the

What amount of the tax benefit related to the uncertain tax

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Question - 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 est. benefit	Individual probability of occurring	Cumulative probability of occurring
340,000	40	40
272,000	25	65
170,000	20	85
0	15	100

Required - 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?

Reference no: EM132448724

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What amount of the tax benefit related to the uncertain tax

Reference no: EM132448724

Reference no: EM132448724

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