Required information [The following information applies to the questions displayed below.) Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.4 million. The fiscal year ends on December 31. Required: 1. Should this contingent liability be reported, disclosed in a note only, or neither? This contingent liability should be Required information [The following information applies to the questions displayed below.] Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.4 million. The fiscal year ends on December 31. 2. What loss, if any, should Top Sound report in its 2021 income statement? (Enter your answer in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).) Loss to be reported ! Required information (The following information applies to the questions displayed below.) Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.4 million. The fiscal year ends on December 31. 3. What liability, if any, should Top Sound report in its 2021 balance sheet? (Enter your answer in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).) Liability to be reported