On February 1, 2018, the state of Florida is investigating an allegation against Fast and Loose, Inc. of dumping radioactive material into the Everglades. Fast and Loose, Inc. classifies this allegation as an unasserted claim. Management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $500,000 is reasonably possible. The company's fiscal year ends on December 31, 2017. Financial statements will be issued on March 31, 2018. What should the company record? The company should not record anything. e Accrual of $500,000 and disclosure in a footnote. Disclosure in a footnote only. Accrual of $500,000 only