# /// script
# requires-python = ">=3.12"
# dependencies = []
# exclude-newer = "2026-08-08T00:00:00Z"
# ///
"""Readable uncertain-tax-position and disclosure bridge for Linden Peak."""

from __future__ import annotations


def money(amount: float) -> str:
    return f"({abs(amount):,.2f})" if amount < 0 else f"{amount:,.2f}"


def percent(rate: float) -> str:
    return f"{rate:.2%}"


pretax_book_income = 500_000.00
tax_exempt_interest = 20_000.00
taxable_income = pretax_book_income - tax_exempt_interest
current_rate = 0.21
return_current_tax = taxable_income * current_rate

# The tax-technical recognition conclusion is supplied. The script measures it.
recognition_threshold_met = True
return_benefit = 60_000.00
settlement_outcomes = [
    (60_000.00, 0.15),
    (45_000.00, 0.40),
    (25_000.00, 0.30),
    (0.00, 0.15),
]

print("Uncertain-position probability staircase")
print("------------------------------------------")
print(f"{'Benefit sustained':>18} {'Probability':>13} {'Cumulative':>13}")
cumulative_probability = 0.00
recognized_benefit = 0.00
if recognition_threshold_met:
    for benefit, probability in settlement_outcomes:
        cumulative_probability += probability
        if recognized_benefit == 0 and cumulative_probability > 0.50:
            recognized_benefit = benefit
        print(
            f"{money(benefit):>18} {percent(probability):>13} {percent(cumulative_probability):>13}"
        )

opening_unrecognized_benefit = 10_000.00
ending_unrecognized_benefit = return_benefit - recognized_benefit
uncertain_tax_expense = ending_unrecognized_benefit - opening_unrecognized_benefit
interest_and_penalties = 1_000.00
total_tax_expense = return_current_tax + uncertain_tax_expense + interest_and_penalties
effective_tax_rate = total_tax_expense / pretax_book_income

print("\nProvision bridge")
print("----------------")
rows = [
    ("Pretax book income", pretax_book_income),
    ("Taxable income", taxable_income),
    ("Return current tax", return_current_tax),
    ("Recognized tax benefit", recognized_benefit),
    ("Ending unrecognized benefit", ending_unrecognized_benefit),
    ("Change in unrecognized benefit", uncertain_tax_expense),
    ("Interest and penalties", interest_and_penalties),
    ("Total tax expense", total_tax_expense),
]
width = max(len(label) for label, _ in rows)
for label, amount in rows:
    print(f"{label:<{width}}  {money(amount):>16}")
print(f"Effective tax rate: {percent(effective_tax_rate)}")

rate_items = {
    "Tax-exempt interest": -4_200.00,
    "Uncertain-position change": 5_000.00,
    "Interest and penalties": 1_000.00,
}
statutory_tax = pretax_book_income * current_rate
print("\nRate reconciliation")
print("-------------------")
print(f"{'Statutory-rate tax':<30} {money(statutory_tax):>16}")
for label, amount in rate_items.items():
    print(f"{label:<30} {money(amount):>16}  {percent(amount / pretax_book_income):>9}")
print(
    f"{'Reported tax expense':<30} {money(total_tax_expense):>16}  {percent(effective_tax_rate):>9}"
)

taxes_paid = {"Federal": 70_000.00, "State": 10_000.00, "Foreign": 10_000.00}
cash_taxes_paid = sum(taxes_paid.values())
threshold = cash_taxes_paid * 0.05
print(f"\nTaxes paid net of refunds: {money(cash_taxes_paid)}")
print(f"Individual-jurisdiction 5% threshold: {money(threshold)}")
for jurisdiction, amount in taxes_paid.items():
    route = "separate" if amount >= threshold else "aggregate"
    print(f"  {jurisdiction:<10} {money(amount):>16}  {route}")

opening_current_payable = 20_000.00
ending_current_payable = opening_current_payable + return_current_tax - cash_taxes_paid
print(f"Ending current tax payable: {money(ending_current_payable)}")

assert abs(sum(probability for _, probability in settlement_outcomes) - 1.00) < 1e-12
assert abs(recognized_benefit - 45_000.00) < 0.01
assert abs(ending_unrecognized_benefit - 15_000.00) < 0.01
assert abs(total_tax_expense - 106_800.00) < 0.01
assert abs(statutory_tax + sum(rate_items.values()) - total_tax_expense) < 0.01
assert abs(ending_current_payable - 30_800.00) < 0.01
print("\nArithmetic controls: PASS")