Ace Co settled litigation on February 1 Year 2. for an event that occurred during Year 1. An estimated liability was determined as of December 31, Year 1. This estimate was significantly less than the final settlement. The transaction is considered to be material. The financial statements for year end Year 1 have not been issued. How should the settlement be reported in Ace's year-end Year 1 financial statements? Accrual of the settlement Disclosure of the settlement A. Yes Yes 8. Yes C. No D.NO No Yes NO