Determine whether Abraham, the defendant, should $($a$)$ record a liability. $($b$)$ disclose in notes, or $($c$)$ have no disclosure for each of the following separate legal claims.

Abraham faces the possibility of a loss on a pending lawsuit. It is reasonably possible that Abraham could be required to pay damages. However, it cannot estimate amounts owed.

Abraham is very unlikely to lose a pending lawsuit. Abraham cannot reasonably estimate the amount of damages to be paid if it loses the lawsuit.

Abraham can resonably estimate that a pending lawsuit will result in damages of $$1,250,000.$ It is probable that Abraham will lose the case.