Cody Company has a loss contingency. The company's legal council's opinion is that the contingency is probable and that they estimate that the amount of the loss will be $300,000. The proper accounting treatment for this contingency is to: A. only disclose the amount of $300,000 in the notes to the financial statements. B. the amount is neither accrued nor disclosed C. $300,000 amount should be accrued as a liability. D. not enough information is given to determine the accounting treatment.
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