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Holmgrens management along with its counsel have concluded

On October 1, 2012, Holmgren Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Holmgren's management along with its counsel have concluded that it is probable that Holmgren will be responsible for damages, and a reasonable estimate of these damages is $6,000,000. Holmgren's insurance policy of $9,000,000 has a deductible clause of $500,000.

How should Holmgren Chemical report this information in its financial statements at December 31, 2012?

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Financial Management: Holmgrens management along with its counsel have concluded

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Financial Management: Holmgrens management along with its counsel have concluded

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