An entity is currently being sued by a customer. A reliable estimate can be made of the costs that would result from a ruling unfavorable to the entity, and the amount involved is material. The entitys managers, lawyers, and auditors agree that the likelihood of an unfavorable ruling is remote. This contingent liability
A.	Need not be disclosed.
B.	Should be disclosed by an appropriation of retained earnings.
C.	Should be disclosed as a parenthetical comment in the balance sheet.
D.	Should be disclosed in a note.