Burger Barn has been named as a plaintiff in a $$5$ million lawsuit filed by a customer over the addictive nature of the company's french fries. Burger

that the likelihood of a future obligation from the suit is remote. As a result of the lawsuit, Burger Barn should:

Multiple Choice

Disclose the lawsuit in the notes to the financial statements.

Recognize a $$5$ million liability on its balance sheet for the contingency.

Ignore the lawsuit in its financial statements.

Settle with the customer immediately for $$5$ million to avoid harmful publicity.