Indicate the proper accounting treatment for each independent situation. Assume all amounts are material and the situation occurred in year 1. Column A, indicate whether an accural is req (yes or no). Column B enter the amount of the accrual, if no accrual is required, enter $0. Column c, indicate whether a disclosure is required (yes or no). Column A Column B Column C Situation 1 Accural Req? Amount? Note Disclosure Req?

1. The company has been sued for $2 mil. as a result of an injury and legal counsel has advised that the probability is remote that the company will lose the case. 2. The company has been sued for $1.5 mil. as a result of an intellectual property infringement case. The attorney has advised that it is reasonably possible that it will lose the case and incur a loss of between $200,000 and $500,000. 3. The company has been fined $900,000 by the government b/c of clean air violations. The company has appealed and legal counsel has estimated that it is probable that the fine will be reduced to an amount b/w $200,000 and $500,000, but no specific amount in the range can be judged as the best estimate. 4. A competitor has sued the company for $4.5 mil. as a result of predatory pricing, and the company's attorney has advised that it is probable that the company will lose, but the amount of the loss cannot be reasonably estimated. 5. The company has sued a competitor for $3 mil. a s a result of patent ifreingement, and the comapny's attorney has advised that it is probable that the company will prevail with a judgement b/w $500,000 and $1 mil.