B is corrent. Per ASC Topic 450, a loss contingency should be accrued if it is probable that a liability has been incurred at the balance sheet date and the amount of the loss is reasonably estimable. This loss must be accrued because it meets both criteria. ASC Topic 450 requires that when some amount within an estimated range is a better estimate than any other amount in the range, that amount is accrued. If no amount within the range is a better estimate than any other amount, the amount at the low end of the range is accrued and the amount at the high end is disclosed.
A is incorrect. ASC Topic 450 requires that when some amount within an estimated range is a better estimated than any other amount in the range, that amount is accrued. If no amount within the range is a better estimate than any other amount, the amount at the low end of the range is accrued and the amount at the high end is disclosed.
C is incorrect. Per ASC Topic 450, a loss contingency should be accrued if it is probable that a liability has been incurred at the balance sheet date and the amount of the loss is reasonably estimable. ASC Topic 450 requires that when some amount within an estimated range is a better estimate than any other amount in the range, that amount is accrued. If no amount within the range is a better estimate than any other amount, the amount at the low end of the range is accrued and the amount at the high end is disclosed.
D is incorrect. ASC Topic 450 requires that when some amount within an estimated range is a better estimated than any other amount in the range, that amount is accrued. If no amount within the range is a better estimate than any other amount, the amount at the low end of the range is accrued and the amount at the high end is disclosed.
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