Below are two independent situations. 1. A suit for breach of contract seeking damages of $2,400,000 was filed by an author against Early Co. on October 4, 2017. Early's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is $600,000. 2. Peete is involved in a pending court case. Peete's lawyers believe it is probable that Peete 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