Please answer the questions in the attached file. All the questions are the topics of current liabilities and contingencies, long term liabilities.

1. Jasper Inc. has a December 31 year-end. The covenants for Jasper Inc.'s long-term debt A require, among other things, a current ratio (current assets/current liabilities) of at least 1.2. Based on the following financial information, what should the calculation of the current ratio be using US GAAP and IFRS? a. Current assets are $30 million. b. Current accrued liabilities are $9 million. c. Short-term debt at December 31 is $4 million. The treasurer has indicated he intends to get this debt refinanced before its due date in September, but it is unlikely to happen before the financial statements are issued. d. Long-term debt A of $4 million has equal principal payments over the next four years. e. Long-term debt B is due in three years and has a principal balance of $6 million. The treasurer discovered a debt covenant violation in November and a waiver was obtained in December. f. Long-term debt C is due in five years and has a principal balance of $5 million. The treasurer discovered a debt covenant violation in December and a waiver was obtained on the first day of business in January. g. A provision to settle litigation for $10 million also needs to be recorded in the year-end accounts. It is likely this amount will be paid sometime in the next year. The current pretax discount rate is 10%. 2. At year end, Domestic Company has the following federal income tax accounts on its books: Current deferred tax asset $20,000 Non-current deferred tax asset $15,000 Current tax liability $14,000 Non-current deferred tax liability $10,000 Describe how these tax accounts would be presented on the year-end balance sheet using US GAAP and IFRS assuming Domestic Company has the legal right to offset these federal income taxes. 3. In 2013, Slim Drug Company began to notice problems with its obesity drug. The company stopped selling the drug near the end of 2013. In the last six months of 2014, the company was sued by 1,000 people who had an allergic reaction to the company's obesity drug. At the end of 2014, the company's attorneys believe there is a 60% chance the company will need to make payments in the range of $1,000 to $5,000 to settle each claim. At the end of 2015, while none of the cases have been resolved, the company's attorneys now believe there is an 80% chance the company will need to make payments in the range of $2,000 to $7,000 to settle each claim. In 2016, 400 claims were settled at a total cost of $1.2 million. Based on this experience, the company believes 30% of the remaining cases will be settled for $3,000 each, 50% will be settled for $5,000 and 20% will be settled for $10,000 each. Using US GAAP and IFRS, show what journal entries would be required in 2013, 2014, 2015 and 2016. 4. At December 31, 2013, MIC had $20 million in 12% bonds payable, due in December 2017. The CFO recently returned from New York where he met with a couple of investment bankers and, based on those discussions, he believes that MIC can issue $20 million in new bonds to different investors bearing interest at 10%. The 12% bonds allow for prepayment by MIC beginning in 2013. Unamortized costs relating to the bonds total $500,000. The CFO estimates the investment banking, legal and accounting costs to execute the transaction should total $2 million. a. Assuming MIC goes forward with this transaction; would this be an extinguishment or a modification of debt? b. If this is considered an extinguishment of debt, how would the costs associated with this transaction be treated using US GAAP and IFRS? c. Prepare a journal entry to record this transaction, assuming this was an extinguishment of debt, using US GAAP and IFRS. d. Use the same situation above, except assume the investment bankers have been able to negotiate with the 12% bondholder and they have agreed to reduce the interest rate on the debt to 11% beginning January 1, 2014. Fees for the reduction in interest will total $500,000. Is this deemed as a modification of terms? e. If this is considered a modification of terms, how would the costs associated with this transaction be treated using US GAAP and IFRS