Brlef Exerclse $13-15($Static$)$ Contingency; disclosures $[$LO$13-5,13-6]$

Bell International estimates that a $$10$ million loss will occur if a foreign government expropriates some company property. Expropriation is considered reasonably possible.

How should Bell report the loss contingency?

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$?$ The contingency is acrued.

The contingency is not accrued.

This is a gain contingency.

This is a loss contingency.

It is probable that the confirming event will occur.

The contingency can be reasonably estimated.

A disclosure note should describe the contingency.