KR Corporation was involved in a lawsuit with the Government alleging inadequate air pollution control facilities at its Glowworm plant site during 2013. At December 31, 2016, it appeared probable the Government would settle for approximately $150,000. This event should be recorded (i.e., recognized) in 2016 as a(n): Multiple Choice Loss on the lawsuit (operating expense). Unusual I gain. Prior period adjustment. Unusual loss. Disclosure of contingency loss only in a note.