For each of the following independent events:

• Identify whether it should be classified as a Type I or Type II subsequent event; and
• State what impact, you would expect on the financial statements (and notes) assuming a December 31^st year-end.

1. January 3: The provincial government approved construction of an expressway. The plan will result in an expropriation of land owned by the Company. Construction will begin late next year. No estimate of the expropriation award is available.
2. January 15: A series of personal disagreements have arisen between the President of the Company and the Treasurer. As a result, the Treasurer has resigned effective immediately, under an agreement whereby the Company would purchase her 10% share ownership at book value.
3. January 22: one of the auditees three major plants burned down, resulting in a $50 million loss that was covered $40 million by insurance.
4. February 15: the Company approved a 2-for-1 stock split effective on this date.