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 $1.14 million.

2.The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $0.94 to $1.14 million.

3.The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.14 million.

4.The likelihood of a payment occurring is remote, while the estimated potential amount is $1.14 million.

• Record the contingent liability if needed.