In May 2021, Boho Ltd, an international footwear label, took legal action against Copy Cat Ltd for patent infringement. Boho Ltd is seeking damages of $1 million because Copy Cat's new footwear collection contains a number of shoes bearing logos that closely resemble its patented signature monogram. Copy Cat Ltd is defending the claim. At the time of signing the year end financial statements, the company's lawyers have indicated there is a 40% probability of Copy Cat successfully defending the claim. Required: i. Using the decision tree from the Guidance (Part B) section of AASB 137 Provisions, Contingent Liabilities and Contingent Assets, determine the treatment of this item for the year ended 30 June 2021. Cite relevant paragraph references. (6 marks including 1 mark for citation) ii. Explain the difference between a provision and a contingent liability. (2 marks) iii. Explain how the difference between a provision and a contingent liability impacts the presentation of the financial statements and why this is important for users. (2 marks) (10 marks)