LO 10-4 McDonald's M10-12 Reporting a Contingent Liability Buzz Coffee Shops is famous for its large servings of hot coffee. After a famous case involving McDonald's, the lawyer for Buzz warned management (during 2017) that it could be sued if someone were to spill hot coffee and be burned. "With the temperature of your coffee, I can guarantee it's just a matter of time before you're sued for $1,000,000." Buzz felt the likelihood was remote. Unfortunately, in 2019, the lawyer's prediction came true when a customer filed suit. After consulting with his attorney, Buzz felt the loss was possible but not likely or probable. The case went to trial in 2020, and the jury awarded the customer $400,000 in damages, which the company immediately appealed. Buzz felt a loss was probable but believed a lower amount could be negotiated. During 2021, the customer and the company settled their dispute for $150,000. What is the proper reporting of this liability each year from 2019 through 2021 under GAAP? Would the reporting differ under IFRS?