Below are three independent situations In August. 2016 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Barkley Co. for $600,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company $400,000. A suit for breach of contract seeking damages of $2,000,000 was filed by an author against Henderson Co.on October 4, 2016. Henderson's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $500,000 and $1,000,000. No amount within this range is a better estimate of potential damages than any other amount. Kroft is involved in a pending court case. Kroft's lawyers believe it is probable that Kroft will be awarded damages of $1,000,000. Instructions Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers