Contingent liabilities ADd Several months ago $,$ Ayers Industries Inc. experienced a hazardous materials spill at one of its plants $.$ As a result $,$ the Environmental Protection Agency $($EPA $)$ fined the company $$380,000.$ The company is contesting the fine $.$ In addition $,$ an employee is seeking $$620,000$ in damages related to the spill $.$ Lastly $,$ a homeowner has sued the company for $$240,000.$ The homeowner lives $30$ miles from the plant but believes that the incident has reduced the home's resale value by $$240,000.$ Ayers legal counsel believes that it is probable that the EPA fine will stand $.$ In addition $,$ counsel indicates that an out$-$of $-$court settlement of $$270,000$ has recently been reached with the employee $.$ The final papers will be signed next week $.$ Counsel believes that the homeowner's case is much weaker and will be decided in favor of Ayers $.$ Other litigation related to the spill is possible $,$ but the damage amounts medical are uncertain $.$