Mirage Enterprises is being sued for copyright infringement. The company believes that it is probable that it will lose the suit and pay $$100,000.$ How should this potential liability be reported.

Multiple Choice

$$ $$100,000$ recorded immediately even before the courts determine the outcome and disclosed a note the financial statements.

$$ $$100,000$ recorded after the courts declare a verdict in the future

$$ Disclosed only as a note to the financial statements.

$$ $$100,000$ recorded after the courts declare a verdict in the future and note to the financial statements also bemade after the verdict is made.