Current Attempt in Progress Vaughn Corporation in preparation of its December 31 , 2025, financial statements, is attempting to determine the proper accounting treatment for exh of the following situations. 1. As a result of uninsured accidents during the vear, personal injury suits for $761,200 and $116,600 have been filed against the company. It is the judgment of Vaughn's legal counsel that an unfavorable outcome is unlikely in the $116,600 case but that an unfoworabfe verdict spprodimating $479.800 (rellably estimated) will probably result in the $761.200 case. 2. Vaughn owns a subsidiary in a forelgn country that has a book value of $5,624,000 and an estimated fair value of $9,190,800. The foreign government has communicated to Vaughn its intention to expropriate the assets and business of all foreign Itwestors. On the basis of settements other firms have received from this same country. Vaughn expects to receive 50 os of the fair value of its properties as final settlement. 3. Vaughn'schemical product division eonsisting of five plants is uninsurable because of the special risk of injury to employees and losses due to fire and explosion, The year 2025 is considered one of the safest (luckiest) in the division's history because no loss due to infury or casualty was suffered. Having suffered an averoge of three casualties a vear during the rest of the past decade (ranging from $58,300 to $765.500 ), management is certain that next year the company will probably not be so fortunate. (a) Prepare the journal entries that should be recorded as of December 31.2025 , to recognize each of the situations above. If no entry is required, select "No Entry' for the occount titles and enter ofor the amounts. Credit account titles are automatically indented when amount is