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make sure to choose the correct answer 100% . Black Water Inc. is being sued by former employees as a result of negligence on the

make sure to choose the correct answer 100%

.

Black Water Inc. is being sued by former employees as a result of negligence on the company's part. Black Water's 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 100,000,000 to 200,000,000. However, the lawyer states that the most probable cost is 125,000,000. As a result of the above facts, Black Water should accrue

a. no loss provision but disclose a contingency of 100,000,000 to 200,000,000.

b. a loss provision of 100,000,000 and disclose an additional contingency of up to 100,000,000.

c. a loss provision of 125,000,000 but not disclose any additional contingency.

d. a loss provision of 125,000,000 and disclose an additional contingency of up to 75,000,000.

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