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A company is being sued for $10,000,000 but the lawyers think it is a frivolous lawsuit and that there is a remote chance that the

A company is being sued for $10,000,000 but the lawyers think it is a frivolous lawsuit and that there is a remote chance that the company will lose. How would they report this contingent liability? (Points : 3) As a disclosure in the footnotes to the financial statements As a long term liability because the lawsuit is not likely to be settled for years They do not have to report anything On the face of the income statement As a subsequent event

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