BE12.18 (LO 2, 3) Cargo Company purchased land from Hazard Company for €20,000,000 on September 13, 2025. On October 31, 2025, it learned that the site was contaminated. As a result, Cargo sued Hazard for €4,000,000. Cargo’s attorneys believe that their odds of winning the case are 75%.

Indicate how Cargo should account for this lawsuit at December 31, 2025.