-Near the beginning of the year, the City walk was sued by one of its residents claiming that the residents was injured due to a hazardous sidewalk. The resident is asking for damages of 500,000.prior to fiscal year-end on June 30, the city decided to settle the lawsuit on the advice of its legal counsel. The government settled the suit for 300,000, paying 100,000 now, and 50,000 on July 25 for each of the next 4 years. For these types of lawsuits, the city is self insured for the first 50,000 and 100% insured for the remaining payments. The entry to record the lawsuit settlement includes a debit entry to expenditures for climes and judgments of :

-50,000

-100,000

-150,000

-200,000