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30 Unrecognized Tax Benefit. Dopey Corporation paid $875,000 in meals and enter- tainment expenses during the year. Dopey plans to deduct the entire amount on

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30 Unrecognized Tax Benefit. Dopey Corporation paid $875,000 in meals and enter- tainment expenses during the year. Dopey plans to deduct the entire amount on its tax return. The company believes that it meets the more likely than not standard that the deduction would be upheld upon audit. However, the company is not sure how much of the deduction would be allowed by the IRS. The company estimates that there is 0% possibility that they would be allowed the entire amount. The com- pany estimates there is a 15% possibility that they would be allowed a deduction for 80% of the amount paid, a 20% possibility that they would be allowed a de- duction for 60% of the amount paid, a 25% possibility that they would be allowed a deduction for 50% of the amount paid, and a 40% possibility that they would be allowed a deduction for 40% of the amount paid. Compute the Unrecognized Tax Benefit that Dopey must report in its financial statements

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