X company is being sued for $3 million. X Company's lawyer estimates that there is a probability of 3% that X Company will have to pay out $3 million. x Company should deal with this: Select one: a. By recognizing a liability of $1 million b. None of these options c. By recognising an asset of $1 million d. By disclosing details of the case in the Notes to the accounts but NOT recognizing a liability in the Balance Sheets e. By ignoring the case completely in the financial statements Clear my choice