Chiefs Company is the defendant in a lawsuit related to overpayment of its quarterback. Chiefs' attorney believes it is probable that the company will lose between $500,000 and $900,000. What should Chiefs report in it's current financial statements related to this lawsuit? O The company should disclose the nature of the lawsuit only. The company should record a contingent liability of $500,000 and disclose an additional $400,000 along with the nature of the lawsuit They should record a contingent liability and disclose the nature of the lawsuit. The company should neither accrue a liability nor disclose the nature of the lawsuit.