Madison company has taken a position in its tax return to claim a tax credit of $125 million (direct reduction in taxes payable) and has determined that its sustainability is "more likely than not," based on its technical merits. the tax credit would be a direct reduction in current taxes payable. madison believes the likelihood that a $125 million, $75 million, or $25 million tax benefit will be sustained is 25%, 35%, and 40%, respectively. madison's taxable income is $640 million for the year. its effective tax rate is 40%. what is madison's income tax expense for the year?

The following data were taken from the records of clarkson company for the fiscal year ended june 30, 2017. raw materials inventory 7/1/16 $58,100 factory insurance $4,800 raw materials inventory 6/30/17 46,600 factory machinery depreciation 17,100 finished goods inventory 7/1/16 99,700 factory utilities 29,400 finished goods inventory 6/30/17 21,900 office utilities expense 9,350 work in process inventory 7/1/16 21,200 sales revenue 560,500 work in process inventory 6/30/17 29,400 sales discounts 4,700 direct labor 147,550 plant manager’s salary 63,400 indirect labor 25,360 factory property taxes 9,910 accounts receivable 28,000 factory repairs 2,500 raw materials purchases 97,300 cash 39,200 a) prepare a cost of goods manufactured schedule (assume all raw materials used were direct materials). b) prepare an income statement through gross profit c)prepare the current assets section of the balance sheet at june 30, 2014