?

In year 1, a personal injury lawsuit was brought against Halsey
Co. Based on counsel’s estimate, Halsey reported a $50,000
liability in its December 31, year 1 balance sheet. In November
year 2, Halsey received a favorable judgment, requiring the
plaintiff to reimburse Halsey for expenses of $30,000. The plaintiff
has appealed the decision, and Halsey’s counsel is unable to
predict the outcome of the appeal. In its December 31, year 2
balance sheet, Halsey should report what amounts of asset and
liability related to these legal actions?

Asset
Liability