Lark Lane Corporation concluded that it was able to exclude $5,800,000 in income from its current tax return. Income before the exclusion is $7,000,000. There are no book-tax differences. This income is subject to a 40% tax rate. Based on its technical merits, Lark Lane determined that it is more likely than not that the exclusion would be sustained upon examination by tax auditors. The possible outcomes and their related probabilities follow. (Click the icon to view the data.) Requirement Determine the amount of tax benefit from the exclusion that Lark Lane should recognize in its tax provision for the current year and prepare the journal entry needed to record the tax provision for the current year. First, determine the amount of tax benefit from the exclusion that Lark Lane should recognize in its tax provision for the current year. The most likely tax benefit to be realized is Data table Filed Amount of the Exclusion That Management Expects to Maintain Likelihood That the Tax Position Will Be Sustained at This Level (%) 5,800,000 5% 5,200,000 30 4,600,000 20 4,000,000 20 680,000 25 Print Done