On July 1, 2018, Ross-Livermore Industries issued nine-month notes in the amount of $600 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Fiscal Year Ends: Rate Time = Interest Expense 12 % II Principal (million) $ 600 $ 600 $ 600 million million 10 % x December 31, 2018 September 30, 2018 October 31, 2018 January 31, 2019 = 8 % = million 600 8 % million The Commonwealth of Virginia filed suit in October 2016 against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conservation. When the 2017 financial statements were issued in 2018, Northern had not reached a settlement with state authorities, but legal counsel advised Northern Timber that it was probable the ultimate settlement would be $1,232,000 in penalties. The following entry was recorded: Credit General Journal Loss-litigation Liability-litigation Debit 1,232,000 1,232,000 Late in 2018, a settlement was reached with state authorities to pay a total of $734,000 to cover the cost of violations. Required: 1. Prepare any journal entries related to the change. 2. Would a disclosure note be required for the change in estimate