If you could also explain how you solved for it, I would appreciate it.

Recording Various Contingencies Atlanta Corp. is preparing its financial statements for its December 31 year-end and is considering the following events. Choose the most appropriate accounting treatment from the following options: a. Accrue the contingency in the financial statements. b. Disclose the contingency in the notes accompanying the financial statements. c. Do not accrue or disclose the contingency. d. Either a or b. e. Either b or c