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Question
Which one of the following contingencies requires financial statement disclosure?
A. A lawsuit that the firm's attorneys believe will be dropped.
B. A lawsuit that the firm's attorneys believe will probably be settled for $75,000.
C. A reasonably possible loss on a lawsuit that the firm's attorneys cannot estimate the loss.
D. A reasonably possible loss on a lawsuit that the firm's attorneys believe will be settled for $100,000.
Answer
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