Brunswick Corporation is a multinational company that manufactures and sells marine and recreational products. A prior annual report contained the following information:

Litigation

A jury awarded $44.4 million in damages in a suit brought by Independent Boat Builders, Incorporated, a buying group of boat manufacturers and its 22 members. Under the antitrust laws, the damage award has been tripled and the plaintiffs will be entitled to their attorneys fees and interest. The Company has filed an appeal contending the verdict was erroneous as a matter of law, as to both liability and damages.

Required:

If Brunswick recorded a liability for $133.2 million (3 $44.4 million), which of the following best describes the likelihood of having to pay this amount:

multiple choice

• Probable

• Reasonably possible

• Remote