British Columbia Corporation, (BCC), a privately held company with several widely traded bond issues and a December 31 year end had the following items pertaining to its 2020 year end. Assume all amounts provided are material to the operations of BCC. Question #1 Required: Explain, following each event, and with supporting computations and enabling accounting entries, if applicable, how each of the above items would be handled in the financial statements for the year ended December 31, 2020 (recorded entry and/or note disclosure or neither). Ignore income taxes. Round to nearest dollar; no cents. Preamble: Because BCC holds 'widely traded bond issues', it is, by definition, a publically accountable enterprise and any accounting treatments must be consistent with IFRS guidance. 6. To ensure a long term supply of a critical raw material, BCC signed a long term purchase commitment, late in 2020, to secure 500,000 kg of raw material from a supplier in Japan at a Canadian $ denominated price (thus removing the foreign exchange risk) of $22 per kg. The raw material is to be delivered during 2021 as determined by the manufacturing department. By December 31, 2020 the world price of the raw material permanently decreased by $2 kg due to new world sources coming on stream. 7. A lawsuit for $3,000,000 has been brought against the company for damages caused by allegedly faulty product. An analysis from BCC's lawyer indicates similar precedent cases of the courts have required settlements ranging from $200,000 to $1.2 million with associated payment likelihoods of $200,000, 20%; $500,000, 30%, $750,000, 40%; $1,000,000, 10%. The case has yet to go to court and BCC has determined that a settlement will have to be made to the plaintiff. 8. A lawsuit for $1.7 million was filed against BBC in the last quarter for wrongful dismissal by a former executive. Although the case has yet to go to court, legal counsel and management have determined that the case is frivolous and without merit. Similar precedent cases with greater merit that have gone to court have had settlement range from $300,000 to $1,000,000 with associated amount and probability settlements of $300,000, 20%, $400,000, 60%, $700,000, 10%, $1,000,000, 10%