While shopping in a store on July 5, Year 1, a customer slipped on the floor and sustained back injuries. On January 15, Year 2, the customer sued the store for $1 million. The case came to trial on April 30, Year 2. The jury's verdict was rendered on June 15, Year 2, with the store being found guilty of gross negligence. A damage award of $400,000 was granted to the customer. The store, on June 25, Year 2, appealed the decision to a higher court on the grounds that certain evidence had not been admitted by the lower court. The higher court ruled on November 1, Year 2 that the evidence should have been admitted. The lower court reheard the case beginning on March 21, Year 3. Another jury, on April 20, Year 3, again found the store guilty of gross negligence and awarded $500,000. On May 15, Year 3, the store paid the $500,000 judgment. The loss should be recognized

in Year 3

more information is needed about the probability of the of the lawsuit being launched in year 1, the likelihood of its success, and the probability of a successful appeal

in Year 1

in Year 2

None of the other alternatives are correct