Fortheyear-endDecember31,2010,financialstatements,whatamount should M record as a liability?Please also explain how to do it. Thanks

Case #1 Accounting for a Loss Contingency for a Verdict Overturned on Appeal M International ("M") and W Inc. ("W," a competitor of M) have been engaged in long- standing litigation over a specific patent infringement matter. Below is a summary timeline of specific events that have taken place related to this matter: l. 2. 3. 4. 5. 6. 7. In May 2007, W filed a claim against M for patent infringement. For the year ended December 3 1, 2007, management of M determined that a loss for this matter was probable and represented that the estimate of loss was in the range of $10 million to $15 million, with $12 million being the most likely amount of loss within the range. A jury trial took place in September 2009. The jury reached a verdict on September 24, 2009, and a judgment was ordered in favor of W. The judgment required M to pay W $14 million. In November 2009, M filed a Notice of Appeal with the Court of Appeals. In December 2010, the Court of Appeals issued a ruling in favor of M's appeal and reversed the lower court's ruling on the matter. This meant that the Court of Appeals overturned the jury verdict and the $14 million judgment against M. On December 20, 2010, management of M determined this matter was closed upon discussions with in-house legal counsel.