AXE Co. is the defendant in a lawsuit. AXE reasonably estimates that this pending lawsuit will result

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AXE Co. is the defendant in a lawsuit. AXE reasonably estimates that this pending lawsuit will result in damages of $99,000. It is probable that AXE will lose the case. What should AXE do?

a. Record a liability

b. Disclose in notes

c. Have no disclosure

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