Recording Income Tax Expense with an Uncertain Tax Position

Randolph Inc. took a recent tax position related to the exclusion of $$70,000$ from taxable revenue. Randolph determined that this

position is more likely than not to be sustained in future discussions with taxing authorities. Using available information, Randolph Inc.

created the following summary of probabilities of sustaining its tax position.

Required

Assuming taxable income of $$350,000($reflecting the exclusion of the $$70,000$ uncertain tax revenue$)$ and a tax rate of $25\%,$ record the

income tax journal entry.