Contingent liabilities must be recorded if:
A. The future event is remote.
B. The future event is probable but not estimable.
C. The future event is probable and the amount owed can be reasonably estimated.
D. The future event is reasonably possible but not estimable.
E. The amount owed cannot be reasonably estimated.
Answer: C
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a. $10,000 b. $20,000 c. $30,000 d. $40,000
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