M$10-12($Static$)$ Reporting a Contingent Liability $[$LO $10-4]$

Buzz Coffee Shops is famous for its large servings of hot coffee. After a famous case involving McDonald$$s$,$ the lawyer for Buzz warned management $($during $2020)$ that it could be sued if someone were to spill hot coffee and be burned. $$With the temperature of your coffee, I can guarantee it$$s just a matter of time before you$$re sued for $$1,000,000.$ Buzz felt the likelihood was remote. Unfortunately, in $2022,$ the lawyer$$s prediction came true when a customer filed suit. After consulting with his attorney, Buzz felt the loss was possible but not likely or probable. The case went to trial in $2023,$ and the jury awarded the customer $$400,000$ in damages, which the company immediately appealed. Buzz felt a loss was probable but believed a lower amount could be negotiated. During $2024,$ the customer and the company settled their dispute for $$150,000.$

Required:

State which of the following statement$($s$)$ are true. What is the proper recording of this liability each year from $2022$ through $2024$ under GAAP?