Determine proper treatment of a contingent liability (L08-5) E8-13 Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships Required: For each of the following scenarios, determine the appropriate way to report the situation. Explain your reasoning and record any necessary entry 1. The likelihood of a payment occurring is probable, and the estimated amount is $1.3 million 2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of S1 to $1.6 million. 3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million 4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million