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31: At fiscal year-end, the Department of Justice is investigating a pharmaceutical firm for off-label marketing of certain anxiety medications. The firm's management determines that
31: At fiscal year-end, the Department of Justice is investigating a pharmaceutical firm for off-label marketing of certain anxiety medications. The firm's management determines that it is probable it will be found in violation of the False Claims Act and have to pay a fine of $500 million or $600 million. Assume both fine dollar amounts are equally likely. What is the accounting treatment for this scenario under current U.S. GAAP? Provide any necessary journal entries
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