in the audit of o'brian tools for the year ended 30 june 20x2, mary ellen vercon lists the following items that she considers material for review by the engagement manager

1 a $26000 sale on 14 july 20x2 for fabrication tools that was included in inventory at a cost of $35000

2 bonds that were issued on 16 August 20x2 in the amount of $5000000

3 equipment purchased on 31 july 20x2 for the amount of $125000

4 a major customer field for bankruptcy on 15 june 20x2

5 a legal acton in the amount of $150000 was settled on 6 August 20x2 and is listed as a contingent liability on the financial statements.

6 a legal action was filed against o'brian for an injury to a customer's employee using a tool sold to them by o'brian

7 o'brian has had discussions with a larger tool company for possible merger or sale

a which of the preceding seven items are most likely to be considered subsequent events?

b how could vercon have found each of the seven items?( there is more than one answer fro each of these.)

c what is the appropriate treatment of each of these seven items on 31 DEC 20x2 financial statements, assuming each one is material?