Question 33 2 pts In 2021, a truck owned by Two-Headed Monster Corporation crashed into Mr. Gordon's vehicle. Mr. Gordon is suing Two-Headed Monster Corporation for damages. At the end of the year, the case is still ongoing. Legal counsel for Two-Headed Monster believes that is probable that the company will settle the suit for $200,000. Which of the following is correct accounting treatment for Two-Headed Monster? O Recognize a loss of $200,000 and a liability of $200,000 O Disclose a probable loss of $200,000 in the notes to the financial statements but do not recognize any expense or liability. O Do nothing in the financial statements (do not record loss and liability nor disclose). Recognize a loss of $200,000 only but do not record a liability