M10-12 Reporting a Contingent Liability [LO 10-4) Buzz Coffee Shops is famous for its large servings of hot coffee. After a famous case involving McDonald's, the lawyer for Buzz warned management (during 2014) that it could be sued if someone were to spill hot coffee and be burned. With the temperature of your coffee, I can guarantee it's just a matter of time before you're sued for $1.000.000." Buzz felt the likelihood was remote. Unfortunately, in 2016, the lawyer's prediction came true when a customer filed suit. After consulting with his attorney, Buzz felt the loss was possible but not likely or probable. The case went to trial in 2017 and the jury awarded the customer $400,000 in damages, which the company immediately appealed. Buzz felt a loss was probable but believed a lower amount could be negotiated. During 2018, the customer and the company settled their dispute for $150.000. What is the proper recording of this liability each year from 2016 through 2018 under GAAP? State which of the following statement(s) are true. (Select all that apply.) Buzz must disclose in a note that a potential ability exists because he ability is possible in 2016. Buzz must disclose the liability in a note because the trial judgment makes the likelihood of a fability probable, however the amount of the loss still is not estimable because a lower amount is expected to be negotiated in 2017 Buzz must now record the loss and the liability because the out of court settlement made the 150.000 loss certain in 2018 Buzz must record or disclose the ability because the chance of the ability occurring remote 2017 Buzz must disclose the labely because the chance of the my counting is remote 2018