I. Indicate with a check mark the category for each situation.Loss Gain Contingency A company sued a news program for an unfavorable and inaccurate report it aired. Legal counsel indicates the company will probably win A toxic waste spill occurred. EPA investigation found the company responsible for environmental remediation. An environmental activist organization has threatened to boycott the company's products starting next quarter if its demands are not met Lawsuit filed by a citizen residing near the company's plant claiming illness caused by pollutants from the company's plant II. Prepare any necessary journal entries for the following situations. a. An explosion at the company's manufacturing plant damaged surrounding properties and the property owners filed suit against the company for $22,000,000. Legal counsel indicates the company was at fault and anticipates a settlement of $6,000,000 to $10,000,000. b. One factory compan Development have resulted in compensation. is located in a country whose government is nationalizing all assets of foreign ies. The factory's book value is $5,000,000. Negotiations with the Ministry of Economic 40% of the $10,000,000 fair market value as the company's