E9-9 (Static) Reporting Contingent Liabilities LO 9-4 James Soda is a regional soda manufacturer. James is currently facing three lawsuits, summarized below. Required: How should James report each of the lawsuits in its financial statements and footnotes? Probability of future economic sacrifice Disclosure Re POP A customer issuing James for $1 million because he claims to have found a piece of glass in his soda. Management deems the probability that James will lose the lawsuit and have to pay $1 million as reasonably possible. An omployoo is suing James for $500,000 for an injury she incurred in the parking lot while walking to work Management dooms the probability that James will lose the lawsuit as probable but estimates that a reasonable payout will be $100,000, not $500.000 A customer is suing James for $300,000 bocuse her last name is James and tho claims James stole her name Management deerns the probability that James will lose the lawsuit and have to pay $300,000 as remote