Regal Corporation assessed that $400,000 of its research tax credit on its current year tax return was uncertain, but that it was more likely than not to be sustained on audit. Management at Regal determined the following assessment of the companys potential tax benefit from the credit and its probability of occurring.

Potential Estimated Benefit	Individual Probability of Occurring (%)	Cumulative Probability of Occurring (%)
$400,000	25%	25%
375,000	22	47
280,000	20	67
130,000	18	85
0	15	100

Based on the above scenario, what is the portion of the $400,000 credit that will be unrecognized (require a liability) for uncertain tax positions?

	I.	$0
	II.	$25,000
	III.	$120,000
	IV.	$170,000
	V.	$400,000