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AMC will claim a tax credit of $60 million (direct reduction in taxes payable) this...

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Accounting

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AMC will claim a tax credit of $60 million (direct reduction in taxes payable) this year. AMC also believes the likelihood that $60 million, $36 million, or $12 million tax credit will be sustained upon tax audit next year is 25%, 30%, and 45%, respectively. Otherwise, AMC's taxable income is $520 million for the year. The effective tax rate is 25%. What is AMC's income tax expense for the year? Oa. None of the choices are correct. $70 million. b. $94 million. C. d. $130 million. $24 million. e

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