#2 Company ABC is involved in a lawsuit. Their legal counsel say it is probable that Company ABC will be liable for (will have to pay) $300,000 related to this lawsuit. LABEL answer #2 2 points Is Company ABC required to present this contingency to its shareholders? YES or NO If yes, then how should Company ABC present this lawsuit to its shareholders? Prepare any necessary journal entry(ies). If no, explain why. #3 Company XYZ is involved in a lawsuit. Their legal counsel say it is probable that Company XYZ will be awarded (will receive) $20,000 related to this lawsuit. LABEL answer #3 2 points Is Company XYZ required to present this contingent to its shareholders? YES or NO If yes, then how should Company XYZ present this lawsuit to its shareholders? Prepare any necessary journal entry(ies). If no, explain why. #4 Provide a written answer for each of the following: LABEL answers 4A, 4B, 4C 3 points A) Explain the difference between current liabilities and long-term liabilities. B) Provide 1 example of a current liability. C) Provide 1 example of a long-term liability. #5 List 2 advantages of the corporate form. LABEL answer #5 2 points