relief for violations of environmental laws regulating forest conservation. When the financial statements were iss had not reached a settlement with state authorities, but legal counsel advised Northern Timber that it was proba settlement would be $$1,700,000$ in penalties. The following entry was recorded:

$\backslash$table$[[$General Journal,Debit,Credit$],[$Loss$-$litigation,$1,700,000,],[$Liability$-$litigation,,$1,700,000$