Exercise 8-14 (Algo) Determine proper treatment of a contingent liability (LO8-5) Atlantic Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships. Required: The likelihood of a payment occurring is probable, and the estimated amount is $1.15 million. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.95 to $1.15 million. The likelihood of a payment occurring is reasonably possible