The Attorneys for the City of Hensley Believe That a Lawsuit

The attorneys for the City of Hensley believe that a lawsuit filed against the city will be settled late in the next fiscal year.The attorneys believe that it is probable that the city will have to pay the claimants $30,000 to settle the lawsuit,but it is possible that it could be settled for as little as $15,000 or as much as $40,000.How much should the city accrue as a liability in the General Fund for its current fiscal year?

A) $0
B) $15,000
C) $30,000
D) $40,000