The Buckley Corp. is located in Florida. Since Florida is sometimes affected by major hurricanes, there is a chance that Buckley's property will be damaged in the future. The proper accounting that Buckley should make for these possible future losses is to

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According to accounting principles, a loss contingency should only be accrued if it is probable and the amount can be reasonably estimated. Future hurricanes and their associated damages are uncertain and cannot be accurately predicted or quantified in advance. Therefore, Buckley Corp. should not accrue an expense for possible future hurricane damages.