The assumptions are as follows:
• Company A purchases equipment in the current year and claims a tax deduction for the entire purchase.
• Tax law requires the equipment to be capitalized and depreciated over five years.
• The entity recognizes an \($8\) million uncertain tax liability that will be extinguished over the next 4 years at \($2\) million per year.
What disclosure is required for the possible changes in the unrecognized tax benefits within the next 12 months (FASB ASC 740-10-50-15d)?