Jazz, Inc., claimed $100,000 of rehabilitation credits on its 2023 tax return. There was sufficient tax authority to take the credits.

Jazz, Inc., claimed $100,000 of rehabilitation credits on its 2023 tax return. There was sufficient tax authority to take the credits. However, due to uncertainty regarding the eligibility of some of the expenditures, Jazz only recognized $70,000 of the benefits in its 2023 financial statements. When its tax return was audited in 2024, the IRS challenged the eligibility of some of the expenditures and Jazz agreed to pay $20,000 additional tax to settle the dispute. a. By how much does the settlement impact Jazz's 2024 book tax expense? $ Feedback Check My Work Given the complexity of business transactions, as well as the related tax laws, how tax law applies to a given transaction may sor be uncertain. Financial Accounting Standards Interpretation (FIN) 48, incorporated into ASC 740-10 addresses how this uncertair impact the accounting for income taxes. Whether the tax benefits of an uncertain position may be recognized at all depends on th of the tax authority supporting the position. For tax purposes, taxpayers may take a tax position as long as there is substantial a the position. b. Provide the journal entry necessary to record the 2024 tax payment