Chau Aaron Robinson Architects, Ltd. (ARAL) is a private company that reports its financial results in accordance with ASPE. Unfortunately, a three- storey apartment building that ARAL designed recently collapsed. The owners of the apartment complex are suing ARAL for $10 million in damages. ARAL's legal counsel estimate that the plaintiff has an 80% likelihood of success and that if successful, the litigants will be awarded $6 million to $8 million with all payouts in the range being equally likely. ARAL's $5 million protected errors and omissions liability insurance policy includes a $500,000 deductible clause. The appropriate accounting treatment for this situation would lead to: O a. a loss of $600,000 being reported as footnotes. Ob. a $500,000 gain to be recorded. O c. a $1,400,000 loss to be accrued. d. a $1,000,000 loss to be accrued. e. none of the above