How should Newport Company report each of the following contingencies?
(a) A reasonably possible threat of expropriation exists for one of Newport’s manufacturing plants located in a foreign country. Any compensation from the foreign government would be less than the plant’s carrying amount (book value).
(b) Potential costs exist due to the discovery of a safety hazard related to one of Newport’s products. These costs are probable and can be reasonably estimated.
(c) One of Newport’s warehouses located at the base of a mountain can no longer be insured against rockslide losses. As of yet, no rockslide losses have occurred.