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First bank has some question as to the tax free nature of $5 million of governmental bonds held in its investment portfolio. This amount is
First bank has some question as to the tax free nature of $5 million of governmental bonds held in its investment portfolio. This amount is excluded from first banks taxable income of $55 million. Management has determined that there is a 65% chance that the tax free status of this entire amount of interest can withstand security of taxing authorities. Assuming a 25% tax rate what amount of income tax expense should the bank report?
Income tax expense_______million
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