Delta Catfish Company has taken a position in its tax return to claim a tax credit of $150 million (direct reduction in

[answerhappygod]

Delta Catfish Company has taken a position in its tax return toclaim a tax credit of $150 million (direct reduction in taxespayable) and has determined that its sustainability is “more likelythan not,” based on its technical merits. Delta has developed theprobability table shown below of all possible materialoutcomes:
Delta’s taxable income is $652 million for the year. Its effectivetax rate is 25%. The tax credit would be a direct reduction incurrent taxes payable.Required:1. At what amount would Delta measure the taxbenefit in its income statement?2. Prepare the appropriate journal entry forDelta to record its income taxes for the year.