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Please help solve: Cadillac Square Corporation determined that $1,127.800 of its research tax credit on its current-year tax return was uncertain, but that it was
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Cadillac Square Corporation determined that $1,127.800 of its research tax credit on its current-year tax return was uncertain, but that it was more likely than not to be sustained on audit. Management made the following assessment of the company's potential tax benefit from the deduction and its probability of occurring. Potential Individual Cumulative Estimated Benefit Probability of Probability of (ees) Occurring (%) Occurring (%) $1,127,820 43 $ 946,550 $ 259,550 100 43 20 93 What amount of the tax benefit related to the uncertain tax position from the research tax credit can Cadillac Square Corporation recognize in calculating its income tax provision in the current year? Tax benefit amount recognizedStep by Step Solution
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