Question: A contractor charged $ 2 0 0 , 0 0 0 in fees to build an amusement park. Upon completion, a water tank that was

A contractor charged $200,000 in fees to build an amusement park. Upon completion, a water tank that was part of the contract collapsed and damaged structures valued at $50,000. The client retained 5% of the contractor fees, and sued the contractor for damages amounting to $100,000. The matter was still pending in court at the end of the contractor's financial year.
What amount would you recognize in the contractor's books with respect to the claims?

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