Page 1: 1 2 3 For each of the independent situations below indicate the appropriate accounting treatment and note disclosure. A judge has found the V company to be liable for an amount of $400,000 for copyright infringement. The company's lawyers feel that an appeal is unlikely to succeed. A customer fell on ice outside the company's store. Legal counsel feels that it is only thirty percent likely that a lawsuit will be successful. The company is being sued for patent infringement. Legal counsel believes that the claim is frivolous and that the likelihood of a successful lawsuit is remote. 1. Record a liability and disclose the situation in the notes. 2. Do not record a liability. the situation in the notes. Disclose 3. Do not record a liability. There is no need to disclose the situation in the notes