a) My company is being sued for $1,000,000. We are fighting the lawsuit and believe we will be successful in beating the lawsuit but it will likely cost us $100,000 in attorney bills and associated costs. Even though we think we will beat the lawsuit, we should discuss the lawsuit in the notes to the financials and we should recognize a pending liability of $1,100,000 on our balance sheet. True or False

b) When two companies form a joint venture and each company owns exactly 50% of the joint venture, both parent's consolidate one half of the joint venture. True or False