Red Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in that country. If expropriation is probable, a loss contingency should be
A. Disclosed but not accrued as a liability.
B. Disclosed and accrued as a liability.
C. Accrued as liability but not disclosed.
D. Neither accrued as a liability nor disclosed.
Answer: B
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