Cullumber Corporation, a manufacturer of household paints, is preparing annual financial statements as of December 31, 2025. Because of a recently proven health hazard in one of its paints, the government has clearly indicated its intention of having Cullumber recall all cans of this paint sold in the last six months. The management of Cullumber estimates that this recall could cost the company $803000. What accounting recognition, if any, should be accorded this situation? No recognition Operating expense of $803000 and liability of $803000 Appropriation of retained earnings of $803000 Note disclosure only