late in 2013, you and two other officers of curbo fabrications corporation just returned from a meeting with officials of the city of jackson. the meeting was unexpectedly favorable even though it culminated in a settlement with city authorities that required your company pay a total of $475,000 to cover the cost of violations of city construction codes. jackson had filed suit in november 2011 against curbo fabrications corporation, seeking civil penalties and injunctive relief for violations of city construction codes regulating earthquake damage standards. alleged violations involved several construction projects completed during the previous three years. when the financial statements were issued in 2012, curbo had not reached a settlement with state authorities, but legal counsel had advised the company that it was probable the ultimate settlement would be $750,000 in penalties. the following entry had been recorded

Original entry

Loss- Litigation 750,000

Liability-Litigation . 750,000

I need to write a memo, that include descriptions of any journal entries related to the change in amount and briefly describes other steps that curbo should take to report the settlement. I have the main idea but i dont know how to write correctly. please help.