Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.

Required:

1. The likelihood of a payment occurring is probable, and the estimated amount is $1.16 million.
2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.96 to $1.16 million.
3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.16 million.
4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.16 million.