QS 9-13 (Algo) Accounting for contingent liabilities LO C3 Huprey Co. is the defendant in the following legal claims. For each of the following separate claims, indicate whether Huprey should (a) record a liability, (b) disclose in notes, or (C) have no disclosure. 1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,250,000. It is probable that Huprey will lose the case. 2. Huprey is being sued for damages of $2,000,000. It is very unlikely (remote) that Huprey will lose the case. 3. It is reasonably possible that Huprey will lose a pending lawsuit. Huprey and its lawyers cannot estimate what the damages will be if it loses. Disclose in notes No disclosure Record a liability