8

The following selected circumstances relate to pending lawsuts for Erismus, Incorporated Erismus's fiscal year ends on December 31 Financial statements are issued in March 2025. Erismus prepares its finencial statements according to IFRS. Required: Indicate the amount Erismus would record as an asset, a labjity or if no accrual would be necessary in the following circumstances. 1. Erismus is defending against a lawsuit Erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment wil be $1,800,000 2. Erismus is defending ageinst a lawsuit. Efismus's management believes it is probable that the company will lose in court if it loses, management belleves that damages could fall anywhere in the range of $2,800,000 to $4,800,000, with any damage in that range equally likely. 3. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court if it. loses, management believes that damages will eventually be $5,800,000, with a present value of $4,300,000 4. Erismus is a plaintif in a lawsuit. Erismus's management belleves it is probable that the company eventuelly will prevail in court, and that if it prevails, the judgment will be $1,800,000 5. Erismus is a plaintiff in a lawsult Erismus's management believes it is vitually certain that the company eventually will prevall in court, and that if it prevails, the judgment wil be $900.000