Before Answering this question please read this:

[ .For each question, you must cite the specific section of the FASC that applies(e.g. FASC 210-20-15-1). Use the following example for the format: Based on FASC 360-10-X, which states ***, the firm should record ***.]

i just need questions 2 and 3 answered and cited

CASE #1

Accounting for a Loss Contingency for a Verdict Overturned on Appeal M International

(M) and W Inc. (W, a competitor of M) have been engaged in long- standing litigation over a specific patent infringement matter. Below is a summary timeline of specific events that have taken place related to this matter:

1. In May 2017, W filed a claim against M for patent infringement.

2. For the year ended December 31, 2017, management of M determined that a loss for this matter was probable and represented that the estimate of loss was in the range of $15 million to $20 million, with $17 million being the most likely amount of loss within the range.

3. A jury trial took place in September 2019.

4. The jury reached a verdict on September 24, 2019, and a judgment was ordered in favor of W. The judgment required M to pay W $18.5 million.

5. In November 2019, M filed a Notice of Appeal with the Court of Appeals.

6. In December 2020, the Court of Appeals issued a ruling in favor of Ms appeal and reversed the lower courts ruling on the matter. This meant that the Court of Appeals overturned the jury verdict and the $18.5 million judgment against M.

7. On December 20, 2020, management of M determined this matter was closed upon discussions with in-house legal counsel.

Required

1. For the year-end December 31, 2017, financial statements, what amount should M record as a liability?

I ALREADY KNOW THIS ANSWER YOU DO NOT HAVE TO ANSWER IT ( ITS 17 MILLION because you should take the best estimation per FASC450-20-30-1

2. For the year-end December 31, 2019, financial statements, should M adjust its liability? If so, what amount should be recorded; and should the amount of the adjustment be considered a 2019 event or a prior period adjustment?

3. For the year-end December 31, 2020, financial statements, what amount should M record as a liability?