Please help with the attached accounting assignment

Problem: use the infomotiorr below to determine the correct orconnting treatment afthe contingent iiobiiity decal-(bad. Select mmautA, 8, ur C below and mmrdyuur manners in Elankbtmni A. Renard a liability B. DISCIOSE the Iia n a fuotnu'lE to thenanrjal ElalEmEn'tS C. Neither I'PCDld nnr disclnse the liability Camo Max manufacture: camouflage apparel for paintball enthusiasts. in the normal course of business. the company encounters various situations giving rise to contingencies. Evaluate the following situations and prepare an explnnnh'nn uf the appropriate accounting considerations for each. 1 The company is subject to several lawsuits by plainti'x. These daims assert that the camouage is so eti'eclive that opposing paintbaliers come into too close ofa range. and are therefore hurtby highavelntr'ity, closeup shots. The mmpany's atlnsoeyviews thelihelihood of any adverse judgment as h ly remote. further, the company generally has seen increased sales because oipub r ty associated with these claims. 2 The company manufactures a face shield that has been putt: to craclr. A: a resrdc several serious injuries have been reported. The company is generally willing to settle each documented claim for $20,000. Currently, it is estimate that 45 such claims will he submitted and settled. 3 The company has issued a full product remit ofthe defective lace shields. and expects to spend $700,000 on issuing replacement shields. The new shields will not be distributed until the next scalyear. i The company has been notied by a competitor that one ofcamo Man's camouage designs violates a copyright held by the competitor. The oompetitoris aslcing for a 5250.000 paid up license to the use the design. Cantu Man disagrees. bnt believes that it is reasonably possible the competitor will le and win on a copyright infringement action. 5 _S_ubs_'e_g_\\!i_z_ _ year end [but heiore preparing rmanm'al smoemenls]. an employee was seriously jored by a fabric cutting machine. The company has agreed to a large linancial settlement with the employee. This paymentwill eliminate any hope of protability during the next several years. Solution: The company is subject to several lawsuits by plaintiffs. These claims assert thatthe camouage is so effective that opposing paintisauers come into too close ora range. and are therefore hurt by highsvelum'ty, closeup shots. The company's attorney views the likelurood ofany adverse judgment as highly remote. Further. the company generally has seen increased sales because orpohlicity associated with these claims. The company manufactures a face shield that has been prone to craclr. its a result several serious iniulies haveheen reported. The company is generally willing to settle each documented claim for $20,000. Currently. it is estimate that 45 such claims will be submitted and settled. The company has issued a full product reca0 ofthe defective face shields. and expects to spend 700,000 on issuing replacement shields. The new shields will nothe distributed until the next fiscal year. The company has been notified by a competitor mat one of Camo Max's camouage designs violates a copyright held by the competitor. The competitor is asking for a $250,000 paid up license to the use the design. Camo Man disagrees. bot believes that it is reasonably possible the competitor will ll a copyright infringement action. ear end (but before preparing financial statements), an employee was seriously injured by a machine. The company has agreed to a large nancial settlement with the employee. This paymeotwrll eliminate any hope ufpmhbility during the meet severalyears