During Year 5, Haft Co. became involved in a tax dispute with the IRS. At December 31, Year 5, Haft's tax advisor believed that an unfavorable outcome was probable. A reasonable estimate of additional taxes was $200,000 with a maximum of $300,000. After the Year 5 financial statements were issued, Haft received and accepted an IRS settlement offer of $275,000. What amount, if any, of accrued liability should Haft have reported in its December 31, Year 5, balance sheet? OA. $0 B. $200,000 OC. $275,000 OD. $300,000