While shopping in a store on July 5, Year 6, a customer slips on the floor and sustains back injuries. On January 15, Year 7, the customer sues the store for \(\$ 1\) million. The case comes to trial on April 30, Year 7. The jury renders its verdict on June 15, Year 7, and finds the store liable for negligence. The jury grants a damage award of \(\$ 400,000\) to the customer. The store, on June 25, Year 7, appeals the decision to a higher court on the grounds that the lower court failed to admit certain evidence. The higher court rules on November 1, Year 7, that the trial court should have admitted the evidence. The trial court rehears the case beginning on March 21, Year 8. Another jury, on April 20, Year 8, again finds the store liable for negligence and awards \(\$ 500,000\). On May 15, Year 8, the store pays the \(\$ 500,000\) judgment. When should the store recognize a loss from these events? Explain your reasoning.