Top Sound International designs and sells high$-$end stereo equipment for auto and home use. Engineers notified management in December $2024$ 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 $\backslash (\backslash$$ $2\mathrm{.}9\backslash )$ million. The fiscal year ends on December $31.$ Required: $1.$ Should this contingent liability be reported, disclosed in a note only, or neither? $2.$ What loss, if any, should Top Sound report in its $2024$ income statement? $3.$ What liability, if any, should Top Sound report in its $2024$ balance sheet? $4.$ What entry, if any, should be recorded?