During Year One, Ace Company sues Travis Corporation for $800,000. At the end of that year, the case is not settled. Ace believes it is 80 percent likely that it will win $600,000 but Travis believes it is 90 percent likely that it will only lose $400,000. Each company views its estimate as reasonable. At the end of Year Two, the case is still not settled but both companies now feel that it is 82 percent likely that Ace will win $510,000. In Year Two, Ace will have no income effect as a result of the lawsuit whereas Travis will recognize a loss of $110,000. a. True b. False