Darwin Corporation's Attorney Has Provided the Following Summaries of Three

Multiple Choice

Darwin Corporation's attorney has provided the following summaries of three lawsuits against Darwin: • Lawsuit A: The loss is probable and the loss can be reasonably estimated.
• Lawsuit B: The loss is reasonably possible and the loss cannot be reasonably estimated.
• Lawsuit C: The loss is reasonably possible and the loss can be reasonably estimated.
Which of the following statements is incorrect?

A) A disclosure note is required for lawsuit A.
B) A disclosure note is required for lawsuit C.
C) A disclosure note is not required for lawsuit B.
D) Lawsuit A is reported on the balance sheet as a liability.