On December 30, 2020, Pizza Planet, a restaurant had a kitchen fire that caused severe damage to the property (book value of $3 million). Investigators are still trying to determine the extent of the damage, but the current estimated damage is $1.0 $1.6 million. No amount in the range is more likely than any other amount.

Which section of the FASB Accounting Standards Codification best defines what amount Pizza Planet should record as a loss contingency in its December 31, 2020 financial statements?