What amount should we credit income tax payable

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Question: Dakota, Inc., took an aggressive tax deduction on its current year return. Prior to the deduction, Dakota had $10,000,000 book and taxable income. The deduction was for $750,000 and is definitely not an expense for book purposes. The tax rate is 32%. The assessment of the amounts and the probabilities of the possible estimated outcomes made by management is below. Amount Allowed as a Deduction Individual Probability of Occurring $750,000 0% $600,000 20% $520,000 29% $450,000 25% $300,000 10% $200,000 16% What amount should we credit income tax payable if it does not take an aggressive tax deduction?

Reference no: EM133609166

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