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32: At fiscal year-end, a cruise ship company was ordered to pay $100,000 to the victims of a recent shipwreck. The company has not yet
32: At fiscal year-end, a cruise ship company was ordered to pay $100,000 to the victims of a recent shipwreck. The company has not yet paid the settlement and is planning to appeal the judgment. Management determines the likelihood of lowering the judgment through the appeals process is remote. What is the accounting treatment for this scenario under current U.S. GAAP? Provide any necessary journal entries
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