Rice Corporation's attorney has provided the following summaries of three lawsuits against Rice:

Lawsuit A: The loss is probable, but the loss cannot be reasonably estimated. Lawsuit B: The loss is reasonably possible, but the loss cannot be reasonably estimated. Lawsuit C: The loss is reasonably possible and can be reasonably estimated.

Which of the following statements is incorrect?

Multiple Choice

• A disclosure note is required for lawsuit C.

• A disclosure note is required for lawsuit B.

• A disclosure note is required for lawsuit A.

• Lawsuit A is reported on the balance sheet as a liability.