Case $BB{?}_{(}())$

During $20$X$4,$ company B was involved in a tax dispute with Inland Revenue Services $($IRS$).$

B$\text{'}$s lawyers indicated that they believe that it is probable that C will lose this dispute. They

also believe that B will have to pay the IRS between $$900,000$ and $$1,400,000.$ After the $20$ X $4$

financial statements were issued, the case was settled with IRS for $$1,200,000.$ What amount

should be reported, if any, as a liability for this contingency as of $31-12-20$X$4?$