Harrington Company was sued by an employee in late $2023.$ General counsel concluded that there was an $80$ percent probability that the company would lose the lawsuit. The range of possible loss is estimated to be $$21,400$ to $$74,900,$ with no amount in the range more likely than any other. The lawsuit was settled in $2024,$ with Harrington making a payment of $$64,200.$

Assume that Harrington Company is a U$.$S$.-$based company that is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U$.$S$.$ GAAP to IFRS must be made. Ignore income taxes.

Required:

Prepare journal entries for this lawsuit for the years ending December $31,2023,$ and December $31,2024,$ under $(1)$ U$.$S$.$ GAAP and $(2)$ IFRS.

Prepare the entry$($ies$)$ that Harrington would make on the December $31,2023,$ and December $31,2024,$ conversion worksheets to convert U$.$S$.$ GAAP balances to IFRS.