1. in July 2021 a competitor commenced a suit against Northstar Resources alleging violation of antitrust laws and seeking damages of $2.5 million. Northstar Resources denies the allegations, and the likelihood that Northstar Resources will have to pay any damages is remote

Discuss the financial reporting issues (recognize or do not recognize) and provide recommendation(s) on how to handle each situation. As you write, keep your audience in mind.