Machine Corp. has several ponding lawsuits agbinst its compary. Heview each situation: A. A pending larvsult, cialming \$121,000 in damoges, is considered likely to fovor the plaintiff and can be reasonably estimated. B. Machine Corp, believes there might be other potentiall lawsuits about this faulty machinecy, but this is unlikely to occur. C. A claimant sues Machlne Corp. for damages, from a dishonored service controct agreement; the plaintiff will likely win the case but damages cannet be rasanably estimated: D. Machine Corp. believes a customer will win a lawsuit it flied, but the outcome is not likely and is not remote. it is possible the eustamer will wina 1 and 2. Which of the ebove situstions require recognition in the financial statements and which require note disclosure only? a. A must be recognized snd requires note disciosure; C and D require note disclosure only. b. All four cates require note disclosure only. C. A, C, and D must be recognized; B requires note disclosure only. d. None of them need to be recognized or disclosed until the result is known. 3. Prepare any journal entries required to recognize a contingent liability, If an amount boo does not require an entry. lasve it biank