Fallon Inc reports taxable income of $$500,000$ for $2011$ and has a marginal tax rate of $20\%.$ rate is expected to increase to $35\%$ next year $(2012)$ and remain at $35\%$ after that. Excluded Fallon's determination of taxable income was a questionable deduction of $$40,000,$ which re an uncertain tax position. Fallon would have reported $$540,000$ in taxable income if they di the questionable deduction. Fallon believes the deduction satisfies the "more likely than no of the IRS. They anticipate the following probabilities of outcome with the IRS:

Allowable

deduction:

Probability

$$30,000$

$30\%$

$$24,000$

$25\%$

$$20,000$

$20\%$

$$10,000$

$15\%$

$$5,000$

$10\%$

What journal entry will Fallon make to account for this uncertain tax position?