Tori Corp. has taken several different positions on its tax returns. Under FASB rules, indicate if it can show a benefit for these positions in its financial statements:

A. The law is unclear as to whether certain entertainment expenses are deductible. Some other companies are currently suing, and courts will decide on the issue soon. Tori deducted them. An IRS agent has noticed the deduction, and is questioning it. Tori’s accountants believe that there is a 40% chance that when the courts decide, the deduction will be allowable.

B. Same as “A,” but Tori has not yet been audited by the IRS, and believes there is only a 10% chance that it will be audited.

C. Same as “A,” but Tori’s accountants believe there is a 75% chance the courts will allow the deduction.

D. The law says that only half of the cost of business meals is deductible.

Tori has deducted 100% of the cost. Tori believes that the odds of the IRS auditing companies of its size are only 1 in 20.