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Murals-R-Us Corporation is being sued for $12 million for age discrimination. The company lawyers believe it is probable the company will have to pay the

Murals-R-Us Corporation is being sued for $12 million for age discrimination. The company lawyers believe it is probable the company will have to pay the $12 million on the lawsuit. How would the Murals-R-Us accountants account for this lawsuit?

None of these

Record the contingent liability as a footnote in the financial statements

Record the contingent liability in the financial statements for $12 million

Do not disclose the lawsuit

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