The Commonwealth of Virginia filed suit in October $2022$ against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the financial statements werie issued in $2023,$ Northern had not reached a settlement with state authorities, but legal counsel advised Northern Timber that it was probable the ultimate settlement would be $$1,550,000$ in penalties. The following entry was recorded:

$\backslash$table$[[$General Journal,Debit,Credit$],[\backslash$table$[[$Loss$-$litigation$],[$Liability$-$litigation$]],1,550,000,],[,,1,550,000$