Assume that you learn of the leakage of hazardous waste from your companys factory. It is estimated that cleanup could cost $10 million. Part 1: What effect will recording this cost have on your companys balance sheet and its income statement? Part 2: Accounting rules require you to record this cost if it is both probable and can be reliably estimated. Although the cleanup is relatively certain, the cost is a guess at this point. Consequently, you have some discretion whether to record it. Discuss the parties that are likely affected by your decision on whether or not to record the liability and related expense and the ethical issues involved.