21. Which one of the following subsequent events will least likely result in an adjustment to the

financial statements?

a. Material change in the amount of settlement of a lawsuit which had been estimated at year end.

b. Bankruptcy of a customer who owes your client a material amount on open account at year

end for which there is an inadequate allowance estimate.

c. Sale of a large block of inventory at a price materially below carrying value.

d. Signing of a letter-of-intent by the client to acquire 55% of another entity for stock.