Holyfield Meats is being sued for illness caused to its employees as a result of negligence in safety measures during the COVID- 19 pandemic. Holyfield's lawyer states that it is probable that Holyfield will lose the suit and be found liable for a judgment costing the company anywhere from $1,500,000 to $7,000,000. According to U.S. GAAP, the presentation in the financial statements of Holyfield should show no liability recorded as the outcome of the case is still pending, but a disclosure of the range of losses possible. a liability (loss contingency) of $4,250,000 the midpoint of the range of loss. a liability (loss contingency) for $1.500,000 and disclosure of an additional contingency of up to $7,000,000. a liability (loss contingency) of $7,000,000 to be conservative