Current Liabilities and Contingencies

5. BLUE JAY COMPANY BELIEVES IT IS PROBABLE THAT IT WILL SUFFER A LOSS FROM A PENDING LAWSUIT. IT ESTIMATES THE LOSS TO BE FROM $4,000,000 To $7,500,000. USING THE FASB CODIFICATION, CITE THE REFERENCE THAT WILL HELP BLUE JAY COMPANY TO RECORD THE CORRECT LosS. 6. LONG-TERM OBLIGATIONS ARE USUALLY RECLASSIFIED AND REPORTED AS CURRENT LIABILITIES WHEN THEY BECOME DUE WITHIN THE UPCOMING YEAR. FOR EXAMPLE, A 15-YEAR BOND ISSUE IS REPORTED AS A LONG-TERM LIABILITY FOR 14 YEARS HOWEVER, IT IS NORMALLY REPORTED AS A CURRENT LIABILITY ON THE BALANCE SHEET DURING THE 15TH YEAR OF ITS TERM TO MATURITY. GIVE AN EXAMPLE IN WHICH THE ABOVE WOULD NOT BE TRUE