Jennie Kubik, the controller at Lamar Landscaping Corp. (Lamar), is examining a series of transactions that occurred after December 31, Year 1, the company's year end. Lamar reports under ASPE. The financial statements were completed on February 15, Year 2, and authorized on February 22. Which one of the following events requires adjustment in the Year 1 financial statements? A. Lamar purchased the net assets of a competitor that was going out of business for $256,000 on February 1, Year 2. B. Lamar was sued by a supplier in November of Year 1 for a disputed payment of $500,000. This lawsuit was settled for $300,000 on January 26, Year 2. C. Lamar sued Bruce's Manure, a supplier of bovine manure in December of Year 1. Lamar won the lawsuit and was awarded damages amounting to $350,000 on February 20, Year 2. D. Lamar was sued by Rimmer's Reeds, a supplier of water flowers, in early February of Year 2 for $400,000 for cancelling a purchase order placed in January, Year 2