A defendant has three outstanding lawsuits at the end of Year 1. The estimated loss for the first, second, and third cases are $5,000,000, $2,000,000, and $1,000,000, respectively. The likelihood that the defendant will lose the first case is highly probable. The chance of losing the second case is reasonably possible, but not probable. The chance of losing the third case is remote. What amount should the defendant accrue as a contingent liability at the end of Year 1? OA. $8,000,000 $7,000,000 C. $5,000,000 D. $2,000,000 B