20) A pending court case with a probable unfavorable outcome is an example of a contingent liability which should be disclosed on the balance sheet but does not require footnote disclosure. (True/False)

21) On May 1, 2021, Gray Company issued a note payable to Fidelity Bank in the amount of $4,800,000, bearing interest at 10%, and payable in four equal annual principal payments of $1,200,000. The first payment for interest and principal was made on May 1, 2022. At December 31, 2022, Gray should record accrued interest payable of?