A company was sued for $ 400,000 and lost the case in the trial court. The court awarded $ 200,000 . The company appealed to a higher court. Legal advisers are of the opinion that the appeals court is likely to rule in favor of the company and substantially reduce the award. There is no reasonable estimate of the final amount of compensation. The company:

to. You will recognize a contingent debt of $ 400,000 b. You will recognize a debt of $ 200,000 c. It will not recognize debt and will disclose in the notes the information about the lawsuit and the opinion of the legal advisors. d. It will not acknowledge debt or disclose on the claim.