A customer was injured in a local grocery store (named Carmen's) in a slip and fall incident, on 10-31- 2016. The customer has not yet filed a lawsuit against the store. Carmen's legal counsel expect that it is likely that such a lawsuit will be filed for medical expenses of $ 120,000. The grocery store's legal counsel will defend the store at trial, if necessary, and believes that there is a 50/50 chance of losing the lawsuit, and being held liable. If a trial is held, and Carmen's is found liable, the store would likely pay $90,000 of damages, but the counsel expects to be able to settle for $ 75,000, if the trial progresses to that point. The trial would most likely take place in late 2017. The store has a calendar/fiscal year, and is now writing up financial statements for 2016, for a balance sheet date of 12-31-2016. Must the store accrue a loss for 2016, and for what amount? Are any disclosures required