The application of ACS 740 to an uncertain tax position requires that a tax benefit be recognized only when it is "more likely than not" to be sustained on the merits.

Name: The application of ACS 740 to an uncertain tax position requires that a tax benefit be recognized only when it is "more likely than not" to be sustained on the merits.
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This is correct, as per ASC 740, a tax benefit can only be recognized if it is "more likely than not" to be sustained on the merits.

The Application of ACS 740 to an Uncertain Tax Position