JiangCo constructs the following table in determining how to apply ASC 740-10 to its filing position for a transfer pricing issue.Its book tax provision for the year, including $3 million for the uncertain transfer pricing issue, is $10 million. Under ASC 740-10, JiangCo's book income tax expense for this item is:
A)$13 million.
B)$11.6 million.
C)$11.4 million.
D)$10 million.

Question

JiangCo constructs the following table in determining how to apply ASC 740-10 to its filing position for a transfer pricing issue.Its book tax provision for the year, including $3 million for the uncertain transfer pricing issue, is $10 million.  Under ASC 740-10, JiangCo's book income tax expense for this item is:
A)$13 million. 
B)$11.6 million. 
C)$11.4 million. 
D)$10 million.

Quizplus · Accepted Answer

The Answer of JiangCo constructs the following table in determining how to apply ASC 740-10 to its filing position for a transfer pricing issue.Its book tax provision for the year, including $3 million for the uncertain transfer pricing issue, is $10 million.  Under ASC 740-10, JiangCo's book income tax expense for this item is:
A)$13 million. 
B)$11.6 million. 
C)$11.4 million. 
D)$10 million.

JiangCo Constructs the Following Table in Determining How to Apply