Problem: XYZ Inc. owned a milling machine that had with originally cost $800,000. On June 29th, 2021 this machine was accidentally damaged by ABC Corp. and became was only good for scrap, and its salvage value was now $48,000. Repair was not possible. XYZ computes depreciation monthly and at the time of the accident, the accumulated depreciation on the machine was $480,000. Prior to the accident, the machine's fair value to XYZ was $1,280,000. In October 2021, XYZ won its court case against ABC Corp and the court awarded damages of $960,000. At December 31, 2021, the final outcome of this case was awaiting appeal and was, therefore, uncertain. However, in the opinion of XYZ's attorney, ABC's appeal will not be successful. At December 31, 2021, what amount should XYZ accrue for this gain contingency? Group of answer choices $1,280,000 $1,040,000 $800,000 $0