at the end of the current year, swen inc. prepares its tax return, which reflects an uncertain amount, reducing the firm's tax liability by $40,000. swen estimates that, upon audit by the irs, there is a 20% chance that the full $40,000 benefit will be upheld, and a 40% chance that the benefit will be only $25,000. as a result of the required recognition and measurement principles for uncertain tax positions, current-year income tax expense is reduced by what amount? $18,000 $25,000 $40,000 $15,000

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at the end of the current year, swen inc. prepares its tax return, which reflects an uncertain amount, reducing the firm's tax liability by $40,000. swen estimates that, upon audit by the irs, there is a 20% chance that the full $40,000 benefit will be upheld, and a 40% chance that the benefit will be only $25,000. as a result of the required recognition and measurement principles for uncertain tax positions, current-year income tax expense is reduced by what amount? $18,000 $25,000 $40,000 $15,000

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KHIRADAFAQGO KHIRADAFAQGO · Answer 1

The current--year income tax expense is decreased with the aid of using the quantity of . $25,000.

The required details about income tax expense is mentioned in below paragraph.

Income tax is taken into consideration an rate for the commercial enterprise or person due to the fact there's an outflow of coins because of tax payout. After the taxable earnings is determined, the commercial enterprise or person is at risk of pay earnings tax on that earnings.Tax costs are the whole quantity of taxes owed with the aid of using an person, corporation, or different entity to a taxing authority. Income tax rate is arrived at with the aid of using multiplying taxable earnings with the aid of using the powerful tax rate Companies document earnings tax rate as a debit and earnings tax payable as a credit score in magazine entries. If corporations use the income tax expense equal coins approach of accounting for each economic and tax reporting, the finished magazine entries encompass an identical debit and credit score to earnings tax rate and earnings tax payable, respectively.

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