In September of 2021, Calhoun Financial Services became involved in a tax dispute with the IRS. On December 31, 2021 . the tax attorney for Calhoun indicated that an unfavorable outcome to the dispute was probable. At that time, the additional taxes were estimated to be $570,000 but could be as high as $770,000. After the year-end, but before the 2021 financial statements were issued, Calhoun revised its tax liability estimate to $650,000. Calhoun should have accrued a related liability on its December 31, 2021 balance sheet that was issued on March 4, 2022: $0. (B) $570,000. $770,000 $650,000. In September of 2021, Calhoun Financial Services became involved in a tax dispute with the IRS. On December 31, 2021 . the tax attorney for Calhoun indicated that an unfavorable outcome to the dispute was probable. At that time, the additional taxes were estimated to be $570,000 but could be as high as $770,000. After the year-end, but before the 2021 financial statements were issued, Calhoun revised its tax liability estimate to $650,000. Calhoun should have accrued a related liability on its December 31, 2021 balance sheet that was issued on March 4, 2022: $0. (B) $570,000. $770,000 $650,000