During the Year,a $1,000,000 Lawsuit Was Filed Against a US

Multiple Choice

During the year,a $1,000,000 lawsuit was filed against a US company for unsafe working conditions.Management and the attorneys feel that it is not likely that the company will lose the case.The plaintiff who filed the lawsuit has offered to settle for $600,000.Management estimates that lawsuits for unsafe working conditions are generally settled for $300,000.What amount of contingent liability would be recorded for this lawsuit on the current balance sheet?

A) $100,000
B) $600,000
C) $300,000
D) $0