A city accounts for its hospital acitivty in an Enterprise Fund. An individual brings a malpracticie suit against the hospital in 2008. City lawyers are very concerned about losing the case if it goes to court, but think they can probably settle it out of court for $50,000. In any event, the city does not expect any cash outflows on the claim for serveral years. How should the Enterpirse Fund report this item in its statements for the year ended December 31, 2008?