PLEASE ANSWER QUESTIONS 4 AND 5 ONLY!!!

Accounting for a Loss Contingency. McIntyre International and Westport, Inc., a competitor of McIntyre, have been engaged in long[1]standing litigation over a specific patent infringement matter. Below is a summary timeline of specific events that have taken place related to this matter: . . In May 2017, Westport filed a claim against McIntyre for patent infringement. For the year ended December 31, 2017, management of McIntyre determined that a loss for this matter was probable and represented that the estimate of loss was in the range of $15 million to $20 million, with $17 million being the most likely amount of loss within the range. A jury trial took place in September 2019. The jury reached a verdict on September 24, 2019, and a judgment was ordered in favor of Westport. The judgment required McIntyre to pay Westport $18.5 million. In November 2019, McIntyre filed a Notice of Appeal with the Court of Appeals. In December 2020, the Court of Appeals issued a ruling in favor of McIntyre's appeal and reversed the lower court's ruling on the matter. This meant that the Court of Appeals overturned the jury verdict and the $18.5 million judgment against McIntyre. On January 6, 2021, Westport filed a petition for a re-hearing before the same panel of appellate judges against the reversal of ruling by Court of Appeals. On February 10, 2021, the appellate judges declined the petition for a re-hearing. On February 28, 2021, management of McIntyre determined this matter was closed upon discussions with in-house legal counsel. . . Required (50 points): 1. Prepare a memorandum addressed to the controller from the assistant controller discussing the proposed accounting treatment along with the relevant accounting pronouncements (ASC Accounting Standards Codification). You should take into consideration the fiscal yearend as well as the implication of subsequent events that occur after yearend but before the financial statements are issued. In the memo, include the following: 2. For the year-end December 31, 2017, financial statements, what amount should McIntyre record as a liability? You should explain why you chose this amount and support your decision with the relevant accounting standard/pronouncement. 3. For the year-end December 31, 2019, financial statements, should McIntyre adjust its liability? If so, what amount should be recorded; and should the amount of the adjustment be considered a 2019 event or a prior period adjustment? 4. Should McIntyre record the reduction of the previously recorded loss contingency in 2020 (upon the Court of Appeals overturning the verdict of the jury) or 2021 (once the appellate judges declined Westport's petition for a re-hearing)? 5. As you conclude the memo, you should also reference any supporting schedules (e.g., tables, timeline, etc.) attached as an appendix to the memo that strengthens your position as to why the accounting treatment that was selected is appropriate based on GAAP