5.) Tydings Corporation is being sued by a former employee. Tydings' lawyer believes that the chance of loss is remote. Which of the following describes how Tydings should report this contingent loss?

Select one:

a. The loss should not be reported.

b. The loss should be disclosed in the notes to the financial statements.

c. The loss should be reported in the financial statements.

d. Both a and b.

e. Both b and c.