Contingent liabilities must be recorded if: The future event is probable but not estimable. The future event is probable and the amount owed can be reasonably estimated. The future event is remote. ) The amount owed cannot be resonably estimated. The future event is reasonably possible but not estimable.

The correct answer is:<br /><br />**The future event is probable and the amount owed can be reasonably estimated.**<br /><br />### Explanation:<br />Contingent liabilities are potential obligations that may arise depending on the outcome of a future event. According to accounting standards (e.g., GAAP or IFRS), contingent liabilities must be recorded in the financial statements if **both of the following conditions are met**:<br /><br />1. The future event is **probable** (i.e., likely to occur).<br />2. The amount owed can be **reasonably estimated**.<br /><br />If either of these conditions is not met, the contingent liability is typically disclosed in the notes to the financial statements rather than being recorded as a liability on the balance sheet. For example:<br />- If the future event is **reasonably possible** but not probable, it is disclosed in the notes.<br />- If the future event is **remote**, no disclosure or recording is required.<br /><br />