4. Analyzing Contingent and other Liabilities various of each situation and The following independent situations represent types liabilities. Analyze indicate proper accounting treatment for the company: (a) record a liability on the which of the following is footnote, or (c) neither record nor balance sheet, (b) disclose the liability in a financial statement disclose any liability. l. A stockholder has filed a lawsuit against Corporation. Clinch's attorneys reviewed the the case. Their review revealed that lawsuits have never resulted in a cash award similar facts and is highly unlikely that this lawsuit will either. company. it when it purchased items from another has a plant 3. Foster Company signed a Agency that a state where it has a plant The Protection notifies Shevlin Company company that is Environmental against Shevlin and another filin a lawsuit for groundwater pollution