WizeCrack Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is probable that they may lose the case. The attorneys estimated that there is a 60% chance of losing and the estimated amount of payment is $1.250,000. Applying U.S. GAAR. what is the proper accounting for this litigation? No action is required Accrue a provision for $1.250,000 Accrue a contingent liability for $1.250,000 Disclose the litigation in the footnotes Applying IERS, what is the proper accounting for this litigation? Accrue a provision for $1.250,000 No action is required Accrue a contingent liability for $1.250.000 Disclose the litigation in the footnotes