2. Which of the following statements regarding uncertain tax position (UTP) is correct?

A. The amount of tax benefit not recognized in the measurement process is recorded as deferred income tax expense in the income statement.

B. ASC 740 applies to tax positions in expected as well as previous tax returns.

C. ASC 740 allows a company to record a tax benefit from an uncertain tax position only if it is probable the benefit will be sustained on audit by a tax authority.

D. Evaluating the need for an uncertain tax position is necessary when a company recognizes tax obligation (e.g., when taxable income increases).

E. All of the choices are incorrect.