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On January 15, 2011, a truck driver for Cork Transfer Company negligently rounded a curve that was also a bridge covering several local merchant shops. The truck jumped the guardrail and fell 30 feet onto one of the shops, causing highly flammable chemicals in the truck to explode.Although by February 22, 2011 (the date on which Cork's financial statements for 2010 are issued), no claims had been filed against Cork, it fully expected that some will be filed in the future.Required:Explain the accounting treatment, if any, Cork should give the contingent loss occurring from the wreck in the December 31, 2010 financial statements.
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