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Lifo Inc. is being sued by one of its customers. The likelihood of losing is likely, however the amount of the loss is unknown. What

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Lifo Inc. is being sued by one of its customers. The likelihood of losing is likely, however the amount of the loss is unknown. What is the correct accounting treatment? a. A brief description of the lawsuit is disclosed in the notes b. Record a liability of $1,000,000 C. Record an asset for $1,000,000 d. Increase Retained earnings for $1,000,000

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