Gaffney Orchards was recently sued by a customer for delivering allegedly spoiled apples for which the customer had ordered and paid. Gaffney's lawyer has determined that the customer will likely win the lawsuit but believes she can fight the case in court and Gaffney will likely have to pay only half of the amount that they are being sued for. How should Gaffney report this lawsuit in their financial statements? Please justify your answer in light of Generally Accepted Accounting Principles for Contingencies (.e. the general rules for accounting for contingencies). (6 points)