Cope Company is a manufacturer of household appliances. During the year, the following information became available: Probable warranty costs on its household appliances are estimated to be 1% of sales. One of its manufacturing plants is located in a foreign country. There is a threat of expropriation of this plant. The threat of expropriation is deemed to be reasonably possible. Any compensation from the form government would be less than the carrying amount of the plant. It is probable that damages will be received by Cope next year as a result of a lawsuit filed this year against another household appliances manufacturer. Required: In answering the following, do not discuss deferred income tax implications. a. How should Cope report the probable warranty costs? Why? b. How should Cope report the threat of expropriation of assets? Why? How should Cope report this year the probable damages that may be received next year? Why? e