On October $1,2020,$ Jackson Chemical was identified as a potentially responsible party by the Emvironmental Protection Agency. Jackson's management along with its counsel have concluded that it is probable that Jackson will be responsible for damages, and a reasonable estimate of these damages is $$5,000,000.$ Jackson's insurance policy of $$9,000,000$ has a deductible clause of $$500,000.$ How should Jackson Chemical report this information in its financial statements at December $31,2020?$