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Help Save & EXE Submit Buzz Coffee Shops is famous for its large servings of hot coffee. After a famous case involving McDonald's, the lawyer for Buzz warned management (during 2017) that it could be sued if someone were to spill hot coffee and be burned. With the temperature of your coffee, I can guarantee it's just a matter of time before you're sued for $1,000,000." Buzz felt the likelihood was remote. Unfortunately, in 2019, the lawyer's prediction came true when a customer filed suit. After consulting with his attorney, Buzz felt the loss was possible but not likely or probable. The case went to trial in 2020, and the jury awarded the customer $400,000 in damages, which the company immediately appealed. Buzz felt a loss was probable but believed a lower amount could be negotiated. During 2021, the customer and the company settled their dispute for $150,000. State which of the following statement(s) are true. What is the proper recording of this liability each year from 2019 through 2021 under GAAP? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Buzz must disclose in a note that a potential ability exists because the ability is possible in 2019 Buzz must disclose the liability in a note because the trial judgment makes the likelihood of a liability probable, however the amount of the loss still is not estimable (because a lower amount is expected to be negotiated) in 2020. Buzz must now record the loss and the liability because the out of court settlement made the $150,000 loss certain in 2021 Buzz must record or disclose the liability because the chance of the liability occurring is remote in 2020. Buzz must disclose the liability because the chance of the liability occurring is remote in 2021