Warren Company has taken a position in its tax return to claim a tax credit of $30 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. Warren believes the likelihood that a $30 million, $18 million, or $6 million tax benefit will be sustained is 25%, 30%, and 45%, respectively. Warren's taxable income is $255 million for the year. Its effective tax rate is 40%. Warren's income tax expense for the year is?

A) $12 million.
B) $72 million.
C) $84 million.
D) $102 million.

C) $84 million

Explanation:

Given that:

Taxable income = $255 million

Tax credit = $30 million

Tax rate = 40% = 0.4

Therefore, Tax payable = (Tax income × Tax rate) - Tax credit = ($255 million × 0.4) - $30 million tax credit = $72 million.

Since  Warren believes the likelihood that a $30 million is sustained is 25%, and the likelihood that an $18 million is sustained is 30%, the total likelihood = (25% + 35% = 55% > 50%)

Therefore the liability for uncertain tax positions = $30 million - $18 million = $12 million.

Warrens income tax expense for the year = Tax payable +  uncertain tax positions = $72 million + $12 million = $84 million.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'