Bexar Company has several warehouses located along a major earthquake fault line. The company has no earthquake insurance. Experts have estimated that a major earthquake will result in damage to the warehouses ranging from $250,000 to $500,000; no amount within this range is a better estimate than any other amount. Seismologists estimate that it is highly probable that a major earthquake will occur along the fault line within the next 5 years.

If it's probable then you need to accrued the liability using the mid-point of the range.