MOR Construction reports using ASPE. In June, one month before its year-end, it was formally notified that it was being sued by a former customer for an environmental spill on a property that MOR had worked on. It is believed that the spill is a result of the work that MOR did, and consequently MOR is being sued for $1,000,000 based on cleanup estimates.MOR denies any wrongdoing. MOR’s lawyers believe that the $1,000,000 is too high and that this claim amount is not substantiated. They do believe that MOR may ultimately be liable for cleanup costs, but the amount will be between $300,000 and$600,000. MOR does not have any liability insurance for this type of claim.Based on this information, how should MOR record the environmental spill?