Madison Company has taken a position in its tax return to claim a tax credit of $60 million (direct

reduction in taxes payable) and has determined that its sustainability is "more likely than not," based on

its technical merits. The tax credit would be a direct reduction in current taxes payable. Madison believes

the likelihood that a $60 million, $36 million, or $12 million tax benefit will be sustained is 25%, 30%,

and 45%, respectively. Madison's taxable income is $510 million for the year. Its effective tax rate is

40%. What is Madison's income tax expense for the year?

Show all work please.... ANSWER BELOW

ANSWER= $168 million