A contingent liability should be recorded in the accounts when:

a. it is probable the contingency will happen, but the amount cannot be reasonably estimated.

b. it is reasonably possible the contingency will happen, and the amount can be reasonably estimated.

c. it is probable the contingency will happen, and the amount can be reasonably estimated.

d. it is reasonably possible the contingency will happen, but the amount cannot be reasonably estimated.