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47. Mikkeler Company has taken a position in its tax return in order to claim deductions of $75 million. Mikkeler believes the likelihood that a
47. Mikkeler Company has taken a position in its tax return in order to claim deductions of $75 million. Mikkeler believes the likelihood that a $75 million, $40 million, or $5 million tax deduction will be sustained is 35%, 30%, and 35%, respectively. Mikkelet's taxable and US GAAP income, excluding this uncertain deduction, is $780 million. Its effective tax rate is 35%. What is Mikkeler's income tax expense for the year? a. S259 million. b $12.25 million. c. S246.75 milliorn. d $273 million
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