28.Lorange AG became involved in a lawsuit with a government agency. The company's legal counsel indicates that there is a 65 percent likelihood that the company will lose this dispute and estimates that the amount the company will have to pay is between $ 500,000 and $ 700,000, with all amounts in that range being equally likely.

Under U.S. GAAP, what amount, if any, should Lorange recognize as a liability related to this lawsuit?

A.$ 700,000.

B.$ 600,000.

C.$ 500,000

D.$0.