Use the information below to answer #13 – 14 MERCK Company…
Use the information below to answer #13 – 14 MERCK Company has taken a position in its tax return to claim a tax credit of $300 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. MERCK believes the likelihood that a $300 million, $140 million, or $80 million tax benefit will be sustained is 25%, 30%, and 45%, respectively. MERCK taxable income is $1,090 million for the year. Its effective tax rate is 25%. What amount was recorded for Liability for Uncertain Tax Positions by MERCK Company?