An acquirer discovers that a competitor has filed a patent infringement lawsuit against the company it is acquiring. This lawsuit is not currently recognized on the acquirees books. How should the acquirer report the lawsuit at the date it makes the acquisition?

a. Dont report it until it is settled.

b. Report it as a liability if it is a probable liability and its value can be reasonably estimated.

c. Report it as a liability if it is a contractual or separable obligation.

d. Report it as a liability if it is more likely than not that they will lose the lawsuit.