Lewis Company files a lawsuit against Clark Corp. for $10,000,000 in December 2017 alleging patent infringement. Clark Corp's management thinks it is reasonably possible that Clark Corp. will eventually have to pay something to settle the suit, and the estimate of the expected amount is reasonably estimable, $3,000,000. New evidence that arose on January, 2018 suggests that it is probable that Clark Corp. will eventually have to pay $3,000,000 to settle the suit. Clark filed its financial statements under U.S. GAAP on March 31, 2018. How were Clark Corp's assets, liabilities, and retained earnings of 2017 affected by this lawsuit? Assets, no effect / Liability, no effect / Retained earnings, no effect Assets, higher $10M / Liability, higher by $10M / Retained earnings, lower by $10M None of other answer choices is correct Assets, no effect/Liability, higher by $10M / Retained earnings, lower by $10M