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In 2020, LaceCo engaged in activities that it believes qualified for the research activities credit. The credit reduced its Federal income tax liability by $400,000 but LaceCo believed that the IRS would likely challenge the credit in an audit. LaceCo estimated that the tax benefit ultimately realized would be less than the immediate tax savings. The estimated potential benefits and related probabilities are presented in the following table. LaceCo recorded a book tax provision of $600,000, including the $400,000 tax benefit from this tax uncertainty. a. Determine the amount that LaceCo should have recognized in 2020 for the tax benefit from this item under GAAP rules and ASC 74010. b. Assuming that LaceCo initially recorded a book tax provision of $600,000, including the $400,000 tax benefit from this tax uncertainty, provide the journal entry that LaceCo should have also recorded to account for the uncertainty surrounding the research activities credit. c. By the end of 2023, LaceCo has not been audited and the statute of limitations regarding its 2020 research activities credit expired. Assuming LaceCo recorded the journal entries described in part b. what, if anything, should the company recognize related to the research credit in 2023 ? If the statute of limitations regarding the credit expires an IRS challenge, LaceCo ultimately realizes the full \$ benefit. It should, therefore, reverse the above entry in 2023, reducing its 2023 tax expense by $

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