C is corrent. Per ASC Topic 450, an estimated loss from a loss contingency shall be accrued if the loss is both probable and reasonably estimable. If no accrual is made for a loss contingency because one or both of the conditions above are not met (as in this case), disclosure of the contingency shall be made where it is at least reasonably possible that a loss was incurred.
A is incorrect. A loss contingency would not be disclosed if the likelihood of loss was only remote.
B is incorrect. A loss that is certain would be accrued.
D is incorrect. A loss that is both probable and reasonably estimable would be accrued. The ability to disclose a range of possible loss indicates that the loss is reasonably estimable.
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