LalaGurl, Incorporated sold leggings made from a fabric that gave many of its customers a serious rash. The customers are suing the company in a class action suit Although the verdict is not yet in, LalaGurl's attorneys think it is probable that the case will cost the company $2 million. The company should: Multiple Choice not include this information in its annual report. record a liability and a gain for $2 million. only explain the situation in the notes to the financial statements. record a liability and a loss for $2 million. 21