JAW Corp reported book income of $100,000,000. It took a tax position that $20,000,000 of this amount was not taxable in the United States, and therefore reported taxable income of $80,000,000. Upon review of the tax position, council for JAW Corp has stated that there is a 75% chance that the position would be sustained if challenged by the IRS and litigated in the court of highest jurisdiction. Council has also stated that the expected benefit if the position was to be negotiated and settled with the IRS would be as follows: Expected Amount of Benefit if Settled Individual Probability Cumulative Probability $7,000,000 $5,500,000 $4,500,000 $2,500,000 $1,000,000 20% 20% 20% 20% 20% 20% 40% 60% 80% 100% Discuss whether JAW Corp must record a liability and the amount of such liability, if any, for the tax position. If a liability is to be recorded, provide the journal entry and state how such entry would impact JAW Corp's financial statements