Mingle, Inc., a manufacturer of cleaning products, is preparing annual financial statements at December 31, 2016. Because recently proven health hazard in one of its cleaning products, the U.S. government has clearly indicated its intention of have Mingle recall all bottles of that product sold in the last six months. The management of Mingle estimates that this recall cost $880, 000. What accounting recognition, if any, should be accorded this situation? (A) expense and equity restriction of $880, 000 (B) note disclosure only (C) expense and liability of $880, 000 (D) no recognition