A company has taken a position in its tax return to claim a tax credit of $50 million (direct reduction in taxes payable) and has determined that its sustainability is "more likely than not," based on its technical merits. The tax credit would be a direct reduction in current taxes payable. The company believes the likelihood that a $50 million, $34 million, or $12 million tax benefit will be sustained is 25%, 30%, and 45%, respectively. The company's taxable income is $680 million (does not include the tax credit in this amount) for the year. Its effective tax rate is 20%. The tax credit would be a direct reduction in the current taxes payable. 1) At what amount would the company measure the tax benefit on its statement? 2) Prepare the journal entry for the company to record its income taxes for this year. 3) Describe the potential resolution to the uncertainty and provided a journal entry for each resolution. A company has taken a position in its tax return to claim a tax credit of $50 million (direct reduction in taxes payable) and has determined that its sustainability is "more likely than not," based on its technical merits. The tax credit would be a direct reduction in current taxes payable. The company believes the likelihood that a $50 million, $34 million, or $12 million tax benefit will be sustained is 25%, 30%, and 45%, respectively. The company's taxable income is $680 million (does not include the tax credit in this amount) for the year. Its effective tax rate is 20%. The tax credit would be a direct reduction in the current taxes payable. 1) At what amount would the company measure the tax benefit on its statement? 2) Prepare the journal entry for the company to record its income taxes for this year. 3) Describe the potential resolution to the uncertainty and provided a journal entry for each resolution