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Consider the following independent situations assuming IFRS applies. The underlined entity is the reporting entity. 1. Call Cattle Inc. sued Nutrient Feed Ltd, for $10

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Consider the following independent situations assuming IFRS applies. The underlined entity is the reporting entity. 1. Call Cattle Inc. sued Nutrient Feed Ltd, for $10 million alleging breach of contract. Nutrient's legal counsel estimates that Call's likelihood of success is about 80%. Based on its experience with cases of this nature, the law firm estimates that, if successful, the litigants will be awarded $8,800,000 to $9,000,000, with all payouts in this range being equally likely 2. Deana Finnamore broke her leg when she tripped on an uneven floor surface in Groton Co.'s office. On the advice o legal counsel, Groton has offered Finnamore $140,000 to settle her $275,000 lawsuit. It is unknown whether Finnamore will accept the settlement offer. Groton's legal counsel estimates that Finnamore has a 90% probability o success, and that if successful, she will be awarded $230,000. 3. The courts ordered a competitor to pay $1,000,000 to Ferbert and Finn Corp. for patent infringement. The competitor's legal counsel indicated that the company will probably appeal the amount of the award. 4. Environment Canada sued Foil Fan Isotopes Ltd, for $18 million seeking to recover the costs of cleaning up Foil Fan's accidental discharge of radioactive materials. Foil Fan acknowledges liability but is disputing the amount, claiming that the actual costs are in the range of $9 million to $12 million. Foil Fan's $18 million environmental insurance policy includes a $6 million deductible clause. Required: a. For each of the situations, indicate whether the appropriate accounting treatment is to: A. Recognize an asset or liability. B. Disclose the details of the contingency in the notes to the financial statements, C. Neither provide for the item nor disclose the circumstances in the notes to the financial statements. b. For each situation that requires the recognition of an asset or liability, record the journal entry

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