M International (M) and W Inc. (W, a competitor of M) have been engaged in long- standing litigation over a specific patent infringement matter. Below is a summary timeline of specific events that have taken place related to this matter:

1. 1. In May 2007, W filed a claim against M for patent infringement.
2. 2. For the year ended December 31, 2007, management of M determined that a loss for this matter was probable and represented that the estimate of loss was in the range of $10 million to $15 million, with $12 million being the most likely amount of loss within the range.
3. 3. A jury trial took place in September 2009.
4. 4. The jury reached a verdict on September 24, 2009, and a judgment was ordered in favor of W. The judgment required M to pay W $14 million.
5. 5. In November 2009, M filed a Notice of Appeal with the Court of Appeals.
6. 6. In December 2010, the Court of Appeals issued a ruling in favor of Ms appeal and reversed the lower courts ruling on the matter. This meant that the Court of Appeals overturned the jury verdict and the $14 million judgment against M.
7. 7. On December 20, 2010, management of M determined this matter was closed upon discussions with in-house legal counsel.

Required (6 points):

1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability?
2. For the year-end December 31, 2009, financial statements, should M adjust its liability? If so, what amount should be recorded; and should the amount of the adjustment be considered a 2009 event or a prior period adjustment?
3. For the year-end December 31, 2010, financial statements, what amount should M record as a liability? I just need the FASB Codes for each question