Bosey Inc. designs and sells sound equipment. Engineers notified management in December 2019 of a technical flaw in a loud speaker that can potentially cause fire. Further investigation indicates that a product recall is probable, estimated to cost the company anywhere between $1 million to $2 million. If management reports this contingent liability, how much should management report in Bosey's 2019 income statement?

David paid $975,000 for two beachfront lots in coastal south carolina, with the intention of building residential homes on each. two years later, the south carolina legislature passed the beachfront management act, barring any further development of the coast, including david's lots. when david files a complaint to seek compensation for his property, south carolina refuses, pointing to a passage in david's own complaint that states "the beachfront management act [was] properly and validly designed to south carolina's " is south carolina required to compensate david under the takings clause?