During 2016, Train-In Inc. became involved in a tax dispute with the IRS. Train-In attorneys have indicated that they believe it is probable that Train-In will lose this dispute. They also believe that Train-In will have to pay the IRS between $900,000 and $1,200,000. After the 2016 financial statements were issued, the case was settled with the IRS for $1,200,000. What amount, if any, should be reported as a liability for this contingency as of December 31, 2016