10) If management can estimate the amount of a contingent liability that will occur due to litigation against the company, and the likelihood of the loss is reasonably possible, a contingent liability Disclosed, but not recorded as a liability. Disclosed and recorded as a liability. C. Neither disclosed nor recorded as a liability. D. Recorded as a liability, but not disclosed. PROBLEM #1-5 points Smith, Inc., a construction company, has decided to sell some construction equipment they have, but no longer need. The assets being sold have a cost of $165,000 and accumulated depreciation of $70,000 at the time of sale, 10/31/17. Smith had estimated a residual value of $15,000 at the end of the 10 year life of the assets. Green, Inc has offered Smith $105,000 cash for the equipment. Smith has accepted the offer. Required: Record the entry Shith, Inc. will make at 10/31/17 Equipment(70m ) Gain 6.0e