Mainer Inc. is being sued by former employees as a result of negligence on the company's part. The lawyers state that it is probable that the company will lose the suit and be found liable for a judgment costing the company anywhere from $90,000,000 to $145,000,000. However, the lawyer states that the most probable cost is $115,000,000. As a result of the above facts, Black Water should accrue

1. a loss contingency of $90,000 and disclose an additional contingency of up to $55,000,000.

2. a loss contingency of $90,000,000 and disclose an additional contingency of up to $145,000,000.

3. a loss contingency of $145,000,000 and disclose they really have no clue as to the final outcome.

4. a loss contingency of $115,000,000 and disclose an additional contingency of up to $30,000,000.