A Company was in the midst of settling a tax disagreement with the IRS. The Company's attorneys met with the IRS on December 28th for a final meeting and then met with management. The attorneys informed management that it was reasonably possible that the Company was going to lose the dispute and pay $280,000 in penalties the next year. Based on this information, at year end December 31, in regard to the financial reporting, the company would O include a loss for $280,000 on the Income Statement O Include a loss of $280,000 on the Balance Sheet Include a footnote disclosure on the dispute and attorneys estimated penalty O Have the option to include a footnote disclosure or to not include a footnote disclosure O None of these actions would be appropriate.