Example 2 Tim is an employee from Brakes \& Motors, Inc. who starts to show severe breathing issues. After receiving medical attention, doctors conclude that they have been caused by asbestos. Tim files a lawsuit against Brakes \& Motors in November 2021. The Company hires a legal council to assist on the case. After analysing all factors (physical sickness, psychological damage, family members, etc.), the council concludes that, with an 80% of probability, the Company will have to compensate Tim with an amount of 250,000. - Record journal entries, if applicable