Fallon company a toy manufacturer that also operates several retail outlets, is preparing its December 31,2019 financial statements. Fallon has an incinerator behind one of its retail outlets which is used to burn cardboard boxes received. I need to know how it will be disclosed on the financial statements. this was all the information given to me!

B. Fallon Company, a toy manufacturer that also operates several retail outlets, is preparing its December 31, 2019, financial statements. Fallon has an incinerator behind one of its retail outlets which is used to burn cardboard boxes received in shipment of inventory from suppliers. The state environmental protection agency filed suit against the company in September 2019 for air pollution. Fallon expects to stop using the incinerator and begin recycling. However, its lawyers believe that it is probable that a fine between $40,000 and $60,000 will be levied against the company, although they cannot predict the exact amount. ao ompituit Instructions: Prepare the journal entry, if any on December 31, 2019 to record the information for Fallon, and explain your reasoning. In addition, explain how the situation would be disclosed in the company's annual report