assume the tax rate for all c-corporations is 21%.

Question 26 2.5 pts On its 20X1 income tax return, Fox Corporation claimed a $185,000 tax credit. Because Fox was sufficiently uncertain that the full $185.000 would be realized upon effective settlement, it recorded an $80,000 liability for unrecognized tax benefits for the credit, in 20x4, the IRS completes its audit of Fox's tax return and they reach a settlement under which $110,000 of the credit is allowed and $75,000 is disallowed. How much does Fox need to debit or credit its liability for unrecognized tax benefits because of the 20X4 settlement with the IRS? O $110.000 debit $75,000 credit O $80.000 debit $5,000 credit