In 20X3, Krilynn was sued for producing duplos that decompose too quickly, with reports of some children coming back to their creations and instead finding piles of dirt. Krilynn is confident that a competitor, Natirk Inc. has been staging these cases for bad publicity. However, Krilynn estimates a loss of $3,000,000 could occur with a probability of 75%. What amount of a loss, if any, should Henry Paul recognize on the income statement?

Group of answer choices

$0

$3,000,000

$2,250,000