Brower Corporation owns a manufacturing plant in the country of Oust. On December 31, 2008, the plant had a book value of \($5,000,000\) and an estimated fair value of \($8,000,000\). Oust'’s government has clearly indicated that it will expropriate the plant during the coming year and will reimburse Brower for only 40% of the plant's estimated fair value.
Required:
What journal entry should Brower make on December 31, 2008 to record the intended expropriation?