Oil Giant Corporation is being sued and it is probable they will lose. At this time, the amount of the damages is unknown. Choose the appropriate accounting treatment. The company will record a contingent liability for 50% of the damages. The legal claim will be included in the note disclosure of the F/S. The legal claim needs to be recorded as a contingent gain. The legal claim needs to be recorded as a contingent liability. No contingency needs to be recorded and no note disclosure is required