Carpenter, Inc., a wholly owned subsidiary of the U.S.-based company, Buildings Ltd., was notified of a loss contingency with an estimated cost ranging between $100,000 and $220,000. Carpenter, Inc. hired an expert appraiser who assessed that all possible dollar amounts of liability in this range are equally likely. Management of Carpenter, Inc. has estimated that there is a 65 percent chance that this contingency will result in an actual loss. According to U.S. GAAP, what is the amount recognized by Carpenter, Inc. as a provision for loss contingency? Multiple Choice No amount will be recorded but an amount will be disclosed in the notes to the financial statements. $100,000 $220,000 $120,000 $160,000