Asolo Construction Co

Multiple Choice

Asolo Construction Co.carries $10,000,000 comprehensive public liability insurance with a $200,000 deductible clause.A suit for personal injury damages was brought against Asolo in 2014.Asolo's counsel believes it probable that the insurance company will settle out of court for an estimated amount of $550,000.At December 31,2014,Asolo should report an accrued liability of

A) $550,000.
B) $350,000.
C) $200,000.
D) $0.