2. Below are two independent situations. Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers. a. In August, 2021, a worker was injured in the factory in an accident, partially the result of his own negligence. The worker has sued Mikell Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and the settlement would cost the company from $250,000 to $500,000. b. A suit for breach of contract seeking damages of $2,000,000 was filed by an author against Kenley Company on October 4, 2021. Kenley's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $500,000 and $1,500,000. No amount within this range is a better estimate of potential damages than any other amount