1 (5 marks) In December 2027, Barbados Company was sued by the government for violation of environmental laws. On March 5, 2028, judgment was rendered. The company had to pay $250,000 as settlement. Barbados' fiscal year ended at Dec 31 and financial statements were issued on Mar 31 in the following year. Required: a. Determine whether the above situation is a "contingent liability" or "provision" at December 31, 2027. (1 mark) b. Determine the appropriate accounting treatment of the above situation at December 31, 2027 and prepare the journal entries if necessary. (4 marks)