Brown Radiology is named in a malpractice suit brought by a patient against Hope Hospital. I clinic's attorneys say this is a nuisance suit and that the damages claimed are out of proportion with damages suffered. The lawyers are willing to state on the record that the chances of an adverse outcome for the clinic are remote. How will this lawsuit affect the clinic's financial statements?

A$.$ The radiology clinic is not required to make any disclosures about the nuisance suit under GAAP.

B$.$ The radiology clinic must include a statement that asserts that the contingency related to the lawsuit is not expected to be material.

C$.$ The radiology clinic must disclose the nature of the contingency related to the lawsuit and provide the exact amount of loss.

D$.$ The radiology clinic must include whatever disclosures that hospital decides to include in their financial statements since they are both named in the lawsuit.