A customer slipped on the sidewalk and broke her arm in November 20x5 and is suing

the company for damages in the amount of $2,000,000. Legal counsel is of the opinion

that damages will be awarded and estimates the following probability distribution:

Amount Probability

$200,000 40%

500,000 40%

1,200,000 20%

Required Prepare the journal entry for the company required by IFRS in the preparation

of the December 31, 20x5 financial statements.