What is the amount of the liability recognized in each of the independent cases below?

a. A plaintiff files a lawsuit against a company. The probability is 90 percent that the company will lose. If it loses, the amount of the loss will most likely be \(\$ 100,000\).

b. A cereal company issues redeemable coupons for "free" boxes of cereal. Now, it issues one million coupons that promise the retailer who redeems the coupons \(\$ 1\) per coupon. The probability of redemption of any one coupon is 9 percent.