On November 7, 2014 Local Residents Sued Brimley Corporation for Excess

On November 7, 2014 local residents sued Brimley Corporation for excess chemical emissions that caused some of them to seek medical attention.The total lawsuit is $8,000,000.Brimley Corporation's lawyers believe that the lawsuit will be successful and that the amount to be paid to the residents will be $4,000,000.On its December 31, 2014 financial statements Brimley should:

A) Accrue a provision loss of $4,000,000 and note disclose.
B) Do nothing as the lawsuit has not yet ended.
C) Simply disclose the details regarding the lawsuit in a note.
D) Accrue a provision loss of $8,000,000 with no financial statement disclosure necessary.