2113 SP17 Question 5 of 90 M10-12 Reporting a Contingent Liability ILO 10-4] Buzz Coffee Shops is famous for its large servings of hot coffee After a famous case involving McDonalda, the lawyer for Buzz warmed management (during 20 that it could be sued if someone were to spil hot coffee and be burmed the temperature of your coffee, Ican guarantee is just a matter of time before youre sued for $1,000,000 Buzz felt the likelihood was remote. Unfortunately, in 2013, the lawyers prediction came true vhen a customer fled suit. After consulting with his attorney, Buzz felt the loss was possible but not likely or probable. The case went to trial in 2014, and the jury awarded the customer S400,000 in damages, which the company immedately appealed Buzz felt aloss was but believed a lower amount could be negotiated During 2015, the customer and the company settled their dispute for $150,000. State which of the following statements) are true. (Select all that apply) Buzz must disclose in a note that a potential lability exists because the lability is possible Buzz must disclose the iabiit in a note because the trial judgment makes the likelhood of a labity probable. the loss st is not stimable because a lower amount is expected to be Buzz must now recordne loss and liability because the out of court sentement made the $150,000 loss certain Buzz must disclose a note that a potential liability exists because the lability is possible in2013. u Buzz must record or dsclose the labity because the chance of the labilly occurring is remote in 2014 Buzz must disclose the lability because the chance of the liability occurring is remote in2015 eBook & Resources Select all that apply a Contingent Liability ILO Learling objective 10 ot Desaibe boi lo account 10 41