Carla runs Carla's Catering with a December 31 year end. Her auditor is currently performing a subsequent events review. All of the following items took place before the financial statements were issued. Which of the following would be a type 1 subsequent event?

A.There was a fire in the kitchen after year end but before the audit report was issued, and the kitchen and all if its contents were destroyed. Carla forgot to pay her fire insurance.

B.Carla's senior sales manager resigns after year end.

C.In December, Carla catered a party. The pathway to the entrance was slippery, and one of the party guests slipped and fell. After year end, a judge ruled in favour of the party guest and Carla has to pay $100,000. An accrual of$20,000 had been made.

D.The inventory at year end consisted primarily of food needed for a large wedding. The chef accidentally left most of the food out too long and it spoiled. After the new year, it was all thrown out.

E.Before year end, Carla catered an afternoon tea. Subsequent to year end, several of the attendees claimed they had food poisoning and sued Carla for $1 million. Carla's lawyers are uncertain of the outcome. Nothing is recorded in the financial statements.

F. To help rebuild the kitchen, Carla had to take out a significant bank loan.

G. Carla hired a new sales manager.