Bank5 recognized an extraordinary loss from the settlement of a lawsuit with Fifth Street Bank that it had impeded on a processing patent. The extraordinary loss was in the amount of $3,250,000 and Bank5 Corporation has an effective tax rate of 35%. Bank5 paid the settlement immediately and recognized the tax benefit as a receivable to offset the current period's taxes.
Instructions:

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The Answer of Bank5 recognized an extraordinary loss from the settlement of a lawsuit with Fifth Street Bank that it had impeded on a processing patent. The extraordinary loss was in the amount of $3,250,000 and Bank5 Corporation has an effective tax rate of 35%. Bank5 paid the settlement immediately and recognized the tax benefit as a receivable to offset the current period's taxes.
Instructions:

Bank5 Recognized an Extraordinary Loss from the Settlement of a Lawsuit