Classify each of following items as a contingent liability, a provision or neither.

An unresolved lawsuit against the entity for copyright infringement.

Allowance for doubtful debts.

An arrangement to pay a bonus to salespersons for achieving sales over $50 000.

Refurbishment costs of a machine that will need refurbishment in two years.

An agreement to act as guarantor for another firm’s borrowings.

Environmental damage that an entity has undertaken to repair.

1000 12 % debentures issued at $100.

A warranty provided at time of purchase that the manufacturer undertakes to repair items that fail within 12 months.