Question 4 (4 marks) Davend Publishing Ltd. (DP) is a publishing company based in Montreal, Quebec that reports under IFRS. DP is currently being sued by Nathan Sloane, an author, for copyright infringement. Nathan reported that some of his material was reproduced in one of DP's magazines without his authorization. Nathan is suing DP for $200,000. In response to the lawsuit, DP's controller recorded a provision of $200,000 to be conservative, despite the fact that DP intends to fight this claim in court. DP's legal counsel indicated that the court will likely award only what normally would have been paid to Nathan for the use of the specific material. Per the legal counsel's report, Nathan charges $25,000 for the publication of similar articles. Required: Discuss the appropriate accounting treatment for the litigation faced by DP, and evaluate the appropriateness of the current accounting done by DP's controller. (4 marks)