100% to 70%: probable

0-10%: remote

that is all

Friday Inc. has been sued for the following alleged infringements of law: 1. Non-payments of end-of-service severance pay and gratuity to 5,000 employees who were terminated without Friday Inc. giving any reason; the class action lawsuit is claiming $30 million. The firm's lawyers estimate the probability of this lawsuit being successful at 60%, and they are confident the firm will only need to pay $10 million to settle the lawsuit. 2. Unauthorized use of a trademark; the claim is for $100 million. The firm's lawyers estimated the probability of this lawsuit being successful at 90%. They expect to settle for $70 million. 3. A second unauthorized use of a trademark; the claim is for $30 million. The firm's lawyers estimated the probability of this lawsuit being successful at 20%. For each of these potential cash flows determine the likelihood (probable, etc.) and how they will be reported. If they create a liability, then report at what amount they would accrue the liability