The Schwalb Corp. is involved in several lawsuits. For each case below, indicate if it is required to: accrue an asset; accrue a liability; make no accrual, but make a disclosure; make neither a disclosure nor an accrual.

Explain.

A. It is suing the Wu Corp. for $15 million. Schwalb’s attorneys say a victory in court is probable, and that it will likely get $12 million on this lawsuit.

B. It is suing the Thomas Corp. for $10 million. Schwalb’s attorneys say that a victory in court is reasonably possible, and that if it wins it will most likely get between $3 and $9 million.

C. The Chen Corp. is suing Schwalb for $50 million. Schwalb’s attorneys say the chance of losing this suit is so small as to be remote.

D. The Nehru Corp. is suing Schwalb for $32 million. Schwalb’s attorneys say it is reasonably possible that Schwalb will lose, but the amount of the loss cannot be reasonably estimated.

E. Six employees are suing Schwalb for violating labor laws. Schwalb’ lawyers believe that Schwalb will probably lose $12 million.