While providing services to Palmer Co., Raider Group caused damages of $125,000. As of the end of the year, both parties agree that it is probable that Raider will pay Palmer the full amount of the damages within the next two months. How would Raider and Palmer report the lawsuit at the end of the year?
A) Raider reports a loss Palmer reports nothing.
B) Raider reports nothing Palmer reports nothing.
C) Raider reports nothing Palmer reports a gain.
D) Raider reports a loss Palmer reports a gain.
Answer: A
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