Madison Company Has Taken a Position in Its Tax Return

Madison Company has taken a position in its tax return to claim a tax credit of $60 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.Madison believes the likelihood that a $60 million,$36 million,or $12 million
Tax benefit will be sustained is 25%,30%,and 45%,respectively.Madison's taxable income is
$510 million for the year.Its effective tax rate is 40%.What is Madison's income tax expense
For the year?

A) $ 24 million.
B) $ 144 million.
C) $ 168 million.
D) $204 million.