A town's garbage trucks accidentally sideswiped two parked automobiles in the year ended December 31, 2013 . One case was settled for $3,000, and the town expects to pay it in January 2014

In the other case, the claimant originally demanded $15,000 . The town attorney thinks they can settle the claim for $10,000, but it probably will take two years to settle the case. What amount should the town report as a claims liability on the General Fund's December 31, 2013 balance sheet?
a. $0
b. $3,000
c. $13,000
d. $18,000

b