1. XYZ Company is being sued for illness caused to local residents as a result of negligence on the companys part in permitting the local residents to be exposed to highly toxic chemicals from its plant. XYZs lawyer states that it is probable that XYZ will lose the suit and be found liable for a judgement costing XYZ anywhere from $1,000,000 to $5,000,000. However, the lawyer states that the most probable cost is $4,000,000. As a result of the above facts, XYZ should accrue a loss contingency of $1,000,000 and disclose an additional contingency of up to $5,000,000. (True/False)