16. Reeves Co.filed suit against Higgins, Inc, secking damages for copyright violations Higgins' legal counsel believes it is probable that Higgins will settle the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely. How should Higgins report this litigation? A) As a liability for $100.000 with disclosure of the range B) As a liability for S150,000 with disclosure of the range. C) As a liability for $200,000 with disclosure of the range D) As a disclosure only. No liability is reported. 17. If management can estimate the amount of loss that will occur due to litigation against the company, and the likelihood of the loss is reasonably possible, a contingent liability should be B) Disclosed, but not reported as a liability. C) Neither disclosed nor reported as a liability. D) Reported as a liability, but not disclosed. 18. Action Travel has 10 employees each working 40 hours per week and earning $20 as bour Federal income taxes are withheld at 15% and state income taxes at 6%. FICA taxes are 7.65 and unemployment taxes are 3.8% of the first $7.000 earned per employee. What is the actual payroll payment (Salaries Payable) for the first week of January? A) $5,404 B) S5,708 C) $4,792 D) $8.000 19. Camp Elm obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. What amount will be recorded for interest expense for the first month's payment on January 31, 2021? A) $125 B) $625 C) $7.500 D) $1,000 20. Camp Elm obtains a $125,000,6%, five-year loan for a new camp bus on January 1, 2021. IF the monthly payment is $2,416.60, by how much will the carrying value decrease when the first payment is made on January 31, 2021? A) $1,000.60 B) $625.00 C) $2,416.60 D) $1,791.60