A suit for breach of contract seeking damages of $4,800,000 was filed by an author against ABC Co. on October 1, 2020. ABC's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $1,200,000 and $3,600,000. No amount within this range is a better estimate of potential damages than any other amount. Give the rationale for your answers.