Blossom Company has a loss contingency. The company's legal council's opinion is that the contingency is probable and that they

estimate that the amount of the loss will be $$539000.$ What is the proper accounting treatment for this contingency?

There is not enough information given to determine the accounting treatment.

The amount is neither accrued nor disclosed.

Only the amount of $$539000$ should be disclosed in the notes to the financial statements.

$$539000$ should be accrued as a liability.