Traeger Inc. is the defendant in a lawsuit filed in January 2020 due to a workplace accident that occurred during the same month. Traeger determined that a loss of $3 million was probable and on February 24, 2020, a settlement of $3.2 million was reached. Financial statements for the year ended December 31, 2019, are issued on March 14, 2020. How would this be reported in the 2019 financial statements? Group of answer choices 

Accrue a $3 million loss as of December 31, 2019, and include a disclosure note. 

Accrue a $3.2 million loss as of December 31, 2019, and include a disclosure note. 

Disclose in the 2019 financial statements as a subsequent event. 

Accrue within other liabilities and no disclosure.

Answer rating: 100% (QA)

Contingent liabilties refer to the obligations the cash outflow relating ... View the full answer