Reeves Company filed suit against Higgins, Incorporated, seeking damages for copyright violations. Higgins' legal counsel believes it is probable that Higgins will settle the lawsuit for an estimated amount in the range of $$150,000$ to $$250,000,$ with all amounts in the range considered equally likely. How should Higgins report this litigation?

Multiple Choice

As a liability for $$150,000$ with disclosure of the range

As a liability for $$200,000$ with disclosure of the range

In a disclosure only, no liability is reported

As a liability for $$250,000$ with disclosure of the range