On November 24, 2016, 15 passengers on Black Airlines Flight No. 901 were injured upon landing when the plane skidded off the runway. Personal injury suits for damages totaling $900,000 were filed on January 11, 2017, against the airline by 11 injured passengers. The airline carries no insurance. Legal counsel has studied each suit and advised the airline company that it can reasonably expect to pay 75% of the damages claimed. The financial statements for the year ended December 31, 2016, were authorized for issuance on February 27, 2017 Required Prepare any disclosures and journal entries required by the airline in preparation of the December 31, 2016, financial statements