1. A large account receivable from Agronowitz Company (material to financial statement presentation) was considered fully collectible at December 31, 2018. Scornick became aware on January 25, 2019 that Agronowitz filed for bankruptcy at the end of 2018 and it is unlikely that the account will be paid.

Type of Event ["Not A Subsequent Event", "Type II", "Type I"]

Financial Statement Effect [ ["No Disclosure or Adjustment Required", "Adjustment Required", "Disclosure Required"]

2. The tax court ruled in favor of the company on January 25, 2019. Litigation involved deductions claimed on the 2016 and 2017 tax returns. In accrued taxes payable, Scornick had provided for the full amount of the potential disallowances. The Internal Revenue Service will not appeal the tax court's ruling.

Type of Event [ ["Type I", "Type II", "Not A Subsequent Event"]

Financial Statement Effect ["Adjustment Required", "Disclosure Required", "No Disclosure or Adjustment Required"]

3. Scornick's Manufacturing Division, whose assets constituted 45 percent of Scornick's total assets at December 31, 2018, was sold on February 1, 2019. The new owner assumed the bonded indebtedness associated with this property.

Type of Event [ ["Not A Subsequent Event", "Type I", "Type II"]

Financial Statement Effect ["Disclosure Required", "Adjustment Required", "No Disclosure or Adjustment Required"]

4. On January 15, 2019, R. E. Fogler, a major investment adviser, issued a negative report on Scornick's long-term prospects. The market price of Scornick's common stock subsequently declined by 40 percent.

Type of Event ["Not A Subsequent Event", "Type I", "Type II"]

Financial Statement Effect ["Adjustment Required", "Disclosure Required", "No Disclosure or Adjustment Required"]

5. At its January 5, 2019, meeting, Scornick's board of directors voted to increase substantially the advertising budget for the coming year and authorized a change in advertising agencies.

Type of Event ["Not A Subsequent Event", "Type I", "Type II"]

Financial Statement Effect ["Adjustment Required", "Disclosure Required", "No Disclosure or Adjustment Required"]

For each of the following items, assume that Josh Feldstein, CPA, is expressing an opinion on Scornick Company's financial statements for the year ended December 31, 2018; that he completed fieldwork on January 21, 2019; and that he now is preparing his opinion to accompany the financial statements. In each item a subsequent event is described. This event was disclosed to the CPA either in connection with his review of subsequent events or after the date on which the auditor has obtained sufficient appropriate audit evidence. Each of the five items is independent of the other four and is to be considered separately. For each of the following subsequent events, identify the type of subsequent event Type I, Type II, or Not A Subsequent Event) and the financial statement effects, if any