While shopping in a store on July $5,$ Year $1,$ a customer slipped on the floor and sustained back injuries. On January $15,$ Year $2,$ the customer sued the store for $$1$ million. The case came to trial on April $30,$ Year $2.$ The jury's verdict was rendered on June $15,$ Year $2,$ with the store being found guilty of gross negligence. A damage award of $$400,000$ was granted to the customer. The store, on June $25,$ Year $2,$ appealed the decision to a higher court on the grounds that certain evidence had not been admitted by the lower court. The higher court ruled on November $1,$ Year $2$ that the evidence should have been admitted. The lower court reheard the case beginning on March $21,$ Year $3.$ Another jury, on April $20,$ Year $3,$ again found the store guilty of gross negligence and awarded $$500,000.$ On May $15,$ Year $3,$ the store paid the $$500,000$ judgment. The loss should be recognized

Multiple Choice

more information is needed about the probability of the of the lawsuit being launched in year $1,$ the likelihood of its success, and the probability of a successful appeal

in Year $2$

in Year $3$

in Year $1$

None of the other alternatives are correct