A customer slipped on the sidewalk and broke his ankle in October 20x4 and is suing the company for damages in the amount of $2,500,000. Legal counsel is of the opinion that damages will be awarded and estimates the following probability distribution:

Amount Probability

$500,000 40%

1,250,000 25%

2,000,000 35%

Required Prepare the journal entry for the company required by IFRS in the preparation of the December 31, 20x4 financial statements.