What Confidence Level Must Management Have That a Tax Position

question 72

Multiple Choice

What confidence level must management have that a tax position will be sustained on audit before it can recognize any portion of the related deferred tax asset under ASC 740?

• A)More likely than not.
• B)Reasonable basis.
• C)Substantial authority.
• D)Probable.

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Definitions:

Ablative

Describes treatments aimed at removing or destroying tissue, often used in the context of surgical procedures or cancer therapies.

Elective

Pertaining to a procedure or treatment chosen by the patient or physician that is not urgent but considered beneficial.

Preoperative Phase

The period of preparation and evaluation before a surgical procedure.

Operating Suite

A specialized facility or room in a hospital where surgical operations are carried out.