Assignment#4 Due April 7th 2020 Help Save Alternate Exercise 16-29 Tax credit, uncertainty regarding sustainability (L016-9) Delta Catfish Company has taken a position in its tax return to claim a tax credit of $10 million (direct reduction in taxes payable) and has determined that its sustainability is "more likely than not," based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes: Probability Table ($ in millions) Amount of the tax benefit that management expects to receive Percentage likelihood that the tax benefit will be sustained at this level $10 10% $ B 20% $ 6 25% 4 20% 3 2 25% noes Delta's taxable income is $85 million for the year. Its effective tax rate is 40%. The tax credit would be a direct reduction in current taxes payable Required: 1. At what amount would Delta measure the tax benefit in its income statement? 2. Prepare the appropriate journal entry for Delta to record its income taxes for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2