On January 1, Year One, the Atlanta Company sues the Seattle Company for $100 million for patent infringement. The case is expected to take years to settle. For each of the following independent situations, indicate the financial reporting to be made by each company.

a.) Both companies believe that Atlanta will probably win this case. However, both feel that estimating the amount of this loss is virtually impossible.

b.) Both companies believe that Atlanta will probably win this case. Both feel that Atlanta will probably win approximately $9 million, but a win as high as $46 million is reasonably possible.

c.) Both companies believe that a loss by Seattle of $53 million is reasonably possible.

d.) Atlanta officials believe that their company will probably win $44 million whereas Seattle officials believe that their company will probably lose $8 million.