6. Carpenter Company is being sued for $2,000,000 for an injury caused to a child as a result of alleged negligence while the child was visiting the Carpenter plant in March 2017. The suit was filed in July 2017. Carpenters lawyer states that it is probable that Carpenter will lose the suit and be found liable for a judgment costing anywhere from $200,000 to $900,000. The lawyer also states that the most probable judgment is somewhere around $400,000. Management of Carpenter is strongly opposed to disclosing this event within their financial statements. What would you recommend to your client Carpenter as to reporting the suit in its 2017 financial statements? Discuss the rationale for your answer. Also include any disclosures, if necessary, that should be made in the financial statements