Authors Academic Press faces three potential contingency situations, described below. Authors fiscal year ends December 31, 2021.

1. In August 2021, a worker was injured in an accident, partially as a result of his own negligence. The worker has sued the company for $0.82 million. Legal counsel believes it is reasonably possible that the outcome of the suit will be unfavorable, and that the settlement would cost the company from $205,000 to $410,000.

2. A suit for breach of contract seeking damages of $1,100,000 was filed by an author on October 4, 2021. Legal counsel believes an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $0.55 million and $0.825 million. No amount within this range is a better estimate of potential damages than any other amount.

3. Authors is the plaintiff in a pending court case. Its lawyers believe it is probable that Authors will be awarded damages of $1.1 million.

Determine the appropriate means of reporting each situation for the year ended December 31, 2021, and record any necessary entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.) Record the contingent liability if needed.