Which of the Following Is an Example of a Loss

Multiple Choice

Which of the following is an example of a loss contingency that should be disclosed in a footnote to a company's financial statements?

A) The president of the company has threatened to resign if the board of directors does not vote to increase executive salaries.
B) A lawsuit has been brought against the company,but the company hopes to prevail in the suit and thereby avoid any liability.
C) The allowance for uncollectible accounts receivable is estimated at $200,000.
D) The company owns special-purpose machinery that,if sold,would probably bring a price less than its current book value.