4. An employment contract with the Chief Executive Ofcer {CED}, requires potential bonuses be paid to a maximum of $100,000 in each of the next three years (2021 2023} if predened operating results and liquidity targets are met. 5. Equipment was installed in December. 2020 for invoice price of $250,000 + 5% GST. BCC has made properly recorded advance instalment payments to the supplier during the year totalling $150,000 but has not yet received the final invoice from the equipment supplier. Hint: Before preparing the asset acquisition entry, what must have been the treatment of the advance payments? 6. To ensure a long term supply of a critical raw material, 802 signed a long term purchase commitment, late in 2020, to secure 500,000 kg of raw material from a supplier in Japan at a Canadian $ denominated price {thus removing the foreign exchange risk] of $22 per kg. The raw material is to be delivered during 2021 as determined by the manufacturing department. Ely December 31, 2020 the world price of the raw material permanently decreased by $2 kg due to new world sources coming on stream. 2. A lawsuit for $3,000,000 has been brought against the company for damages caused by allegedly faulty product. An analysis from BCC's lawyer indicates similar precedent cases of the courts have required settlements ranging from $200,000 to $1.2 million with associated payment likelihoods of $200,000, 20%; $500,000, 30%, $250,000, 40%: $1,000,000, 10%. The case has yet to go to court and ECG has determined that a settlement will have to be made to the plaintiff