Which of the following situations require recording a liability in 2007? (More than one answer may be correct.)

a. In 2007, a company manufactures and sells stereo equipment that carries a three-year warranty.

b. In 2007 , a theater group receives payments in advance from season ticket holders for productions to be performed in 2008.

c. A company is a defendant in a legal action. At the end of 2007 , the company's attorney feels it is possible the company will lose and that the amount of the loss might be material.

d. During 2007, a Midwest agricultural cooperative is concerned about the risk of loss if inclement weather destroys the crops.