Toledo Company is the defendant in a lawsuit Management believes it is probable that the company will lose the lawsuit and have to pay damages in the range of $1 million to $1.5 million, with all amounts in the range considered equally likely. How should the company record this contingent liability? Mutiple Choice As a $1.25 million contingent liability, with disclosure of the contingent liability and the range of potential loss in the notes to the financial statements As a $1.5 million contingent liability, with disclosure of the contingent liability and the range of potential loss in the notes to the financial statements As as $1 million contingent liability, with disclosure of the contingent liability and the range of potential loss in the notes to the financial statements As a disclosure only of the contingent liability and the range of potential loss in the notes to the financial statements. No liability is recorded.