Label the following as:

a) Current Liability b) Long-term Debt or c) Not a Liability.

1. Wash inc. is being sued for cutting down too many trees. Woodens lawyer states that it is probable that Wooden will lose the suit and be found liable for about $2,000,000 in damages and penalties owed within the next year. _______________
2. Alcon Co. introduced a new line of colors that carry a three-year warranty against manufacturers defects. Based on industry experience, warranty costs are estimated at 3% of sales in the year of the sale, 4% in the year after sale, and 6% in the second year after sale. What would Rainbow report during the first year of the sale? _____________
3. Target has 1,000,450 employees that worked during the last week of 2020 leading up to the year-end, but they were not paid until the following year. What would Target report on its 12/31/20 financial statements due to this situation? _______________________
4. Pehn Inc. has a $4 million loan on 12/31/20. The company is considering the ability to refinance the loan to a 5-year debt and received approval by the bank to refinance by 3/15/21, right before the financial statements were published. What would this loan be considered on the 12/31/20 financial statements? __________________