Pop Corporation recognizes a deferred tax asset (benefit) of $150,000 related to its acquisition of Son Company. Pop has determined that the tax position qualifies for recognition and should be measured. Pop has determined the amounts and the probabilities of the possible outcomes, as follows:
Possible Estimated Outcome Probability of Occurring (%)
$150,000 ..................................................... 50
125,000 ..................................................... 20
100,000 ..................................................... 10
50,000 ....................................................... 10
0 .............................................................. 10
REQUIRED:
Calculate the tax benefit to be recognized by Pop.