During year 8. Leucothea Co became involved in a legal dispute with a supplier At December 31. year 8 Leucothea's legal advisor believed that an unfavorable outcome was probable. A reasonable estimate of resulting monetary damages is $100,000 but could be as much as $200,000. Leucothea has legal ability insurance coverage that limits their loss to $80,000. After the year 8 financial statements were issued, Leucothea agreed to settle the case for $125.000 What amount of accrued liability should Leucothea have reported in its December 31, year 8 balance sheet? Multiple Choice $0 $80.000 $100,000 $125.000