2. On October 1, 2019, Hohngren Chemical was identified as a potentially responsible party by its Environmental Regulatory Agency. Holmgren's management along with its counsel have concluded that it is probable that Holmgren will be responsible for damages and a reasonable estimate of these damages is 6 000 000. Holmgren's insurance policy of 9 000 000 has deductible clause of 500 000. How should Holmgren Chemical report this information in its financial statements at December 31, 2019