Sparrow Rock Corporation concluded that it was able to exclude $5,000,000 in Requirement income from its current tax return. Income before the exclusion is $9,000,000 Determine the amount of tax benefit from the exclusion that Sparrow Rock should There are no book-tax differences. This income is subject to a 40% tax rate. Based recognize in its tax provision for the current year and prepare the journal entry on its technical merits, Sparrow Rock determined that it is more likely than not that needed to record the tax provision for the current year. 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.) X Data Table Id recognize in its tax provision for the current year. Filed Amount of the Likelihood that the Tax Position Will Be Sustained at This Level (%) 10 % Exclusion That Management Expects to Maintain $ 5,000,000 4,500,000 4,000,000 3,500,000 650,000 30 25 15 20 Sparrow Rock Corporation concluded that it was able to exclude $5,000,000 in Requirement income from its current tax return. Income before the exclusion is $9,000,000 Determine the amount of tax benefit from the exclusion that Sparrow Rock should There are no book-tax differences. This income is subject to a 40% tax rate. Based recognize in its tax provision for the current year and prepare the journal entry on its technical merits, Sparrow Rock determined that it is more likely than not that needed to record the tax provision for the current year. 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.) X Data Table Id recognize in its tax provision for the current year. Filed Amount of the Likelihood that the Tax Position Will Be Sustained at This Level (%) 10 % Exclusion That Management Expects to Maintain $ 5,000,000 4,500,000 4,000,000 3,500,000 650,000 30 25 15 20