The Heinrich Tire Company recalled a tire in its subcompact line in December 2024. Costs associated with the recall were originally thought to approximate $48 million. Now, though, while management feels it is probable the company will incur substantial costs, all discussions indicate that \$48 million is an excessive amount. Based on prior recalls in the industry, management has provided the following probability distribution for the potential loss: Note: Use Excel, or a financial calculator. Lose Anount Pxobabi11ty $38 million 20% \$ 28 mililion 50 s $18 milition 30 \% An arrangement with a consortium of distributors requires that all recall costs be settled at the end of 2025 . The risk-free rate of interest is 6%. Required: 1. \&2. By the traditional approach to measuring loss contingencies, what amount would Heinrich record at the ond of 2024 for the loss and contingent liability? For the remainder of this problem, apply the expected cash flow approach of SFAC No. 7. Estimate Heinrich's liability at the end of the 2024 fiscal year. 3. to 5 . Prepare the necessary journal entries. Prepare the necessary journal entries. Note: If no entry is required for a transaction/event, select "No joumal entry required" in the first account fleld. Enter your answers in whole dollars. Complete this question by entering your answers in the tabs below. By the traditional approach to measuring loss contingencies, what amolint would Heinrich record at the end of 2024 for the loss and contingent llabllity? For the remainder of this problem, apply the expected cash flow approach of SFAC No. 7. Estimate Heinrich's liability at the end of the 2024 fiscal year. Note: Enter your answers in whole dollars