2 3 7 5 Under each of the following situations please describe how the contingent liabilities should be handled at the end of the accounting period; Record & Disclose the contingent liability on the books or disclose the contingent liability in the footnotes or do nothing. Each situation is independent of the other situations. US 3 a. During the year the company was sued by a former employee for $100,000. At the end of the 2 year the lawyers informed the company that the lawsuit was still pending and that the employee o had a remote chance of winning the lawsuit if the case goes to court. WN 5 b. During the year the company was sued by a customer who fell on the property. At the end of 6 the year the lawyers informed the company that the lawsuit was still pending and that the 7 company had a probable chance of losing the lawsuit if the case goes to court but that at this time 8 the dollar amount of the loss was not known 3 c. During the year the company was sued by their landlord because one of its employees caused 4 some property damage from an automobile accident for $200,000. At the end of the year the 5 lawyers informed the company that the lawsuit was still pending and that the company had a 6 reasonably possible chance of losing the lawsuit if the case goes to court. 1 d. During the year the company was sued by a manufacturer who used their product for 2 $500,000. At the end of the year the lawyers informed the company that the lawsuit was still 3 pending and that the company had a probable chance of losing the lawsuit if the case goes to 4 court. vou