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Huprey Co. is the defendant in the following legal claims. For each of following claims, does Huprey (a) record a liability, (b) disclose in notes,

Huprey Co. is the defendant in the following legal claims. For each of following claims, does Huprey (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,390,000it is probable that Huprey will lose the case.

  • Have no disclosure.
  • Disclose in notes.
  • Record a liability.

2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable.

  • Record a liability.
  • Disclose in notes.
  • Have no disclosure.

3. Huprey is being sued for damages of $2,260,000. It is very unlikely (remote) that Huprey will lose the case.

  • Disclose in notes.
  • Record a liability.
  • Have no disclosure.

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