Wooven Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Wooven's lawyer states that it is probable that Wooten will lose the suit and be found liable for a judgment costing Wooven anywhere from $1,600,000 to $8,000,000. None of the estimates are better than the others. What amount of liability should Wooven report on its balance sheet related to the lawsuit?

a. $0 b. $8,000,000 c. $1,600,000 d. $4,800,000