Help Save & Em The following selected circumstances relate to pending lawsuits for a company. The company's fiscal year ends on December 31 Financial statements are issued in March of the following year. The company prepares its financial statements according to US. GAAP Required: Indicate the amount the company would record as an asset, a liability or if no accrual would be necessary in the following circumstances. 1. The company is defending against a lawsuit. The company's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,860,000. 2. The company is defending against a lawsuit. The company's management believes it is probable that the company will lose in court. If it loses, management believes that damages could fall anywhere in the range of $2,670,000 to $5,340,000, with any damage in that range equally likely, 3. The company is defending against a lawsuit. The company's management believes it is probable that the company will lose in court. If it loses, management believes that damages will eventually be $5,350,000, with a present value of $3,745,000. 4. The company is a plaintiff in a lawsuit. The company's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,860,000. 5. The company is a plaintiff in a lawsuit. The company's management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $670,000. Classification Amount 1. Not accrued $ 0 2. Liability $ 0 3. Liability $ 3,745,000 4. Not accrued $ 0 5. Asset $ 670,000