PA10-5 Determining Financial Statement Reporting of Contingent Liabilities [LO 10-4) Macromedia, Inc., is the original maker of shockwave and flash technologies. One of its annual reports indicated a lawsuit had been filed against the company and five of ts former officers for securities fraud in connection with allegedly making false or misleading statements about its financial results. The lawsuit was settled out of court as described in the following note Legal The settlement amount was $48.0 million, of which approximately $19.5 milion was paid by Insurance. As a result, the Company recorded a $28.5 million charge as a component af other income expenses in its consolidated statements of operations Required: Macromedia did not record alability or include a note to me financial statements prior to settling the lawsuit. Which of the following best describes the estimated Iwethood atos prior to settling the lawsuit Merce Pro