A is corrent. Per ASC Topic 450, an estimated loss from a loss contingency should be accrued if the likelihood of occurrence is probable and the amount of the loss can be reasonably estimated. In this case, the likelihood of occurrence is only reasonably possible, so neither would be accrued.
B is incorrect. Per ASC Topic 450, an estimated loss from a loss contingency should be accrued if the likelihood of occurrence is probable and the amount of the loss can be reasonably estimated. In this case, the likelihood of occurrence is only reasonably possible, so neither would be accrued.
C is incorrect. Per ASC Topic 450, an estimated loss from a loss contingency should be accrued if the likelihood of occurrence is probable and the amount of the loss can be reasonably estimated. In this case, the likelihood of occurrence is only reasonable possibly, so neither would be accrued.
D is incorrect. Per ASC Topic 450, an estimated loss from a loss contingency should be accrued if the likelihood of occurrence is probable and the amount of the loss can be reasonably estimated. In this case, the likelihood of occurrence is only reasonably possible, so neither would be accrued.
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