Caitlin owns a pet store, Caitlin's Critters (CC). Recently an employee failed to properly secure the cages for their rats, gerbils and hamsters properly. When Caitlin came in the next morning, there were animals all over her store. They had also spread into other stores in the mall. She and her employees spent the day capturing animals. They know they did not catch some of them.

The mall had an exterminator come in and set traps. The exterminator said they would have to monitor for 30 days to determine if the animals had begun to breed, which would require a more extensive program. The exterminator believes it is likely they will have to go to midlevel program, which would cost $15,000. However, it is possible that the animals are so spread out that they will not need further treatment. In that case, Caitlin will just be billed $2,000 for the first treatment and monitoring. There is also a small possibility that the rats will mix with domestic rats and large infestation problem. In that case, Caitlin would have to pay $50,000 or more..

The escape occurred in the last three days of the fiscal year. Choose the option that best describes the impact on Caitlin's financial statements in the current year.

liability= 50000, 2000 ,15000

expense=2000,0

choose correct liabilty and expense