Hinley Roofing is situations possibly involved with several that involve contingencies. Ea described . Finleyyear ends December 31, and belows fiscal issued on 20, . the 2016 financial statements are March 2017 1involved in a lawsuit resulting from a dispute with a customer. On January 25, . Finley is 2017, judgment was rendered against Finley in the amount of $34 million plus interest, a total of $36 million. Finley plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company 2. At March 20, 2017, the EPA is in the process of investigating possible environmental violations at one of Finleys work sites, but has not proposed a deficiency assessment Management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of up to $15 million is reasonably possible. 3. Finley is the plaintiff in a $80 million lawsuit filed against AA Asphalt for damages due to lost profits from rejected contracts and for unpaid receivables. The case is in final appeal and legal counsel advises that it is probable that Finley will prevail and be awarded $75 million. 4. In October 2015, the State of Montana filed suit against Finley, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste On February 3, 2017, Finley reached a settlement with state authorities. Based upon discussions with legal counselthe Company feels it is probable that $55 million will be required to cover the cost of violations. Finley believes that the ultimate settlement of this claim will not have a material adverse effect on the company Instructions: 1. Determine the appropriate means of reporting each situation and explain why 2. Prepare any necessary journal entry