2 Accounting treatment for contingenci vze the following independent situations E11-23 A sl1- r Company is being sued by a former employee. Weaver believes that there ote chance that the employee will win. The employee is suing Weaver for is a rem damages of $40,000. Gulf Oil Refinery had a gas explosion on one of its oil rigs. Gulf believes is like the future due to the gas explosion. Gulf cannot estimate the amount of the damages. b. ly that it will have to pay environmental clean-up costs and damages in c. Lawson Enterprises estimates that it will have to pay $75,000 in warranty repairs next year Determine how each contingency should be treated