36. After the end of the 2021 fiscal year but before financial statements were issued, EPK Company learned that an arbitrator had made a $10 million judgment in a litigation judgment against it The claim had been made in 2020 for alleged defects of products sold in 2019. Prior to learning of the judgment, EPK had not accrued any litigation loss, and does not plan to appeal For the 2021 fiscal year, EPK should: A. Disclose the potential for a judgment in the notes, but not indicate the amount, since the judgment was made after fiscal year end. B. Disclose in the notes that a $10 million judgment was made after fiscal year end. C. Accrue a $10 million liability and explain it in a note to the financial statements. D. Do nothing relative to the contingency. 11 38. In 2021, Holyoak Inc. offers a coupon for $20 off qualifying purchases of its new line of products. Holzoak sold 10,000 of these products during the year. By year-end of 2021, 7,100 coupons had been redeemed and the $20 reduction of purchase price provided to customers. Holygak's historical experience with such coupons indicates that 85% of customers use the coupon. Holvoak recognizes coupon expense in the period coupons are issued. What is the coupon promotion liability that Holyoak should report in its December 31, 2021, balance sheet? I A. $20,000. B. $28.000 -C. $18,000. D. $19,000