During the year your company, Upper Deck Yacht Cruises had 3 separate legal instances, each are described below. Please suggest what the appropriate treatment for each pending litigation is and why. If there is a related journal entry required, please provide the value of the accrual.

1. A young boy fell off the boat in the middle of a cruise, he was wearing his life jacket and was rescued almost immediately and without injury. The father is suing Upper Deck due to negligence. However, footage from the CCTV camera on board shows the boy jumping off the deck intentionally. Legal counsel believes that this is an unfounded lawsuit and that no payout will occur.
2. An elderly woman was in the cafeteria when she slipped on some spilt coffee, there was no caution sign around and there were several witnesses to the incident that provided the help she needed. Our lawyer suggests that most cases of this nature settle for around $25,000 and that this is the likely outcome for this case.
3. A rival yacht company claims that Upper Deck's crew stole some of their company's kayaks and is currently suing for damages as well as lost revenues. The figure they quoted was $50,000, which is material for the company. Legal counsel has interviewed all of our staff and confirmed that this case is likely to not settle as they have no basis to claim our crew stole the kayaks.