2. On February 15, 2022, CHAS received notice that a client is suing it for $10 million. The lawsuit is based on an accident the client had at the CHAS store on December 23, 2021. The company's legal counsel advises that the client is likely to win the case. The amount estimated by the advisors is $6 million. CHAS closes its books on December 31 of each year. The 2018 10k report and annual report were released on March 25, 2019. How should CHAS record this event? a As a note to the 2021 financial statements with no effect on the financial statements. b. As a debt in the 2022 Statement of Financial Position. C. As a debt in the 2021 Statement of Financial Position. d. As an unrealized loss in the 2021 Statement of Income and Expenses