A company is the plaintiff in two lawsuits. The first suit involves a competitor who has made an exact copy of one of the company’s products, and the company is suing for patent infringement. The attorneys estimate a $5,000,000 award for the company; however, it is anticipated that the case will be in litigation for 2 to 3 years before final resolution. The second case also involves patent infringement; however , in this instance, the attorneys do not believe the company has a strong case. It is estimated that the company has a 50% chance of winning and the award, if any, would be in the $250,000 to $1,000,000 range. The most appropriate amount to be recorded as a gain contingency is