Nouvou Diet Systems Company is a defendant in a lawsuit that claims damages of \(\$ 55,000\). On the balance sheet date, it appears unlikely that the court will render a judgment against the company. How should Nouvou Diet Systems Company report this event in its financial statements?

a. Omit mention because no judgment has been rendered

b. Disclose the contingent liability in a note

c. Report the loss on the income statement and the liability on the balance sheet

d. Do both \(b\) and \(c\)