How should the following contingencies be treated in the annual report of Akronite Corporation on December 31, 1997?

a. The corporation is presently being sued for patent infringement. The damages are estimated to be $12 million and Akronite’s attorneys feel this will probably be the amount required to be paid. However, the court date is set for June of the following year.

b. The corporation is being sued by the federal government for environmental pollution. The damages alleged by the federal government will probably be assessed against the corporation, yet no estimate has been determined at this point.

c. The corporation is suing another corporation for various patent infringements. The court date is scheduled for March 1998. The lawsuit total is $15 million, and it is almost a sure thing that Akronite will prevail and collect $15 million.