Barone, Inc. is involved with several situations that possibly involve contingencies. Each is described below. Barone's fiscal year ends December 31, and the 2022 financial statements are issued on March 1, 2023 and follow US GAAP. At March 1,2023, the EPA is in the process of investigating possible chemical leaks at two of Barone's facilities that allegedly occurred in 2022, but has not proposed a deficiency assessment. Management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of an estimated $8 million is probable. Barone is the plaintiff in a $33 million lawsuit filed against Faze Corp. for damages due to lost profits from rejected contracts and for unpaid receivables. The case is in