Cadillac Square Corporation determined that $1,131,300 of its research and development tax credit 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 Estimated Benefit (000s) $1,131,300 824,050 84,550 Individual Probability of Occurring (%) FREE Tax benefit amount recognized 41 30 18 11 Cumulative Probability of Occurring (%) 41 71 89 100 What amount of the tax benefit related to the uncertain tax position from the research and development tax credit can Cadillac Square Corporation recognize in calculating its income tax provision in the current year?
Cadillac Square Corporation determined that $1,131,300 of its research and development tax credit 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 Estimated Benefit (000s) $1,131,300 824,050 84,550 Individual Probability of Occurring (%) FREE Tax benefit amount recognized 41 30 18 11 Cumulative Probability of Occurring (%) 41 71 89 100 What amount of the tax benefit related to the uncertain tax position from the research and development tax credit can Cadillac Square Corporation recognize in calculating its income tax provision in the current year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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