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Question: the environmental protection agency on august 1 2018 identified rizden...

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The Environmental Protection Agency on August 1, 2018, identified Rizden Pesticides Ltd. has being potentially responsible for damages to the environment. The company’s management and counsel have concluded that it is probable that Rizden will be responsible for damages in a reasonably estimated amount of $20,000,000. Rizden has an insurance policy of $30,000,000 with a deductible clause of $400,000. As the company’s accountant, how would you report this information in its financial statements at December 31, 2018?

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