1. At January 1, 2015, Edwards Company owned a machine that had cost $300,000. The accumulated depreciation was $180,000, estimated salvage value was $18,000, and fair value was $480,000. On January 4, 2015, this machine was irreparably damaged by Papa Corp. and became worthless. In October 2015, a court awarded damages of $480,000 against Papa in favor of Edwards. At December 31, 2015, the final outcome of this case was awaiting appeal and was, therefore, uncertain. However, in the opinion of Edwards attorney, Papas appeal will be denied. How would this be journalize ?