J\&L Company is sued for causing a toxic waste spill that led to illnesses in a local community. The lawsuit was filed on December 25, 2022. J\&L is consulting with its accountants and lawyers on what must be reported in the company's financial statements for the year ending December 31. The experts explain that they believe there are two possibilities, but a reasonable estimate of the loss either way is in the range of $5 million to $6 million, with no amount within that range any more likely than any other. The possibilities: - The plaintiffs can't produce any evidence, making a loss very unlikely. - The plaintiffs produce sufficient evidence to make a J\&L loss very likely. Required: a) Briefly explain (in complete sentences) what GAAP requires the company to do under each of the two scenarios described above. b) If any journal entries need to be recorded for the scenarios above, indicate what for each scenario and prepare them in proper form as of 12/31/22. c) If any information needs to be provided on the income statement for the two scenarios above indicate what must be reported for each scenario. d) If any information needs to be provided on the balance sheet for the two scenarios above indicate what must be reported and for each scenario