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If management considers a material loss contingency to be probable but an amount cannot be reasonably estimated, the proper accounting treatment is: 1

Accounting

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If management considers a material loss contingency to be probable but an amount cannot be reasonably estimated, the proper accounting treatment is:

1.       note disclosure only.

2.       accrual in the financial statements only.

3.       accrual in the financial statements and note disclosure.

4.       no adjustment or disclosure necessary.