Please help with this accounting assignment regarding contingent liabilities

Problem: Use the inirmotion below to determine the correct accounting treatment ofthe contingent liability described. Select heehnent. R. or C below and record your shavers in Blackbeard A. Record a liabilityr B. Disclose the liability in a footnote to the nancial statements C. Neither record nor disclose the liabilityr Camo l'I-'iax manufactures camouage 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 explanation of the appropriate accounting considerations for each. 1 The company is subject to several lawsuits by piaintiifs. These claims assert that the camouage is so e'eciive that opposing palntballers come into too close ofa range. and are therefore hurt by high-velocity. close-up shots. The company's attorney views the likelihood of any adverse judgment as highly remote. Further. the company generally has seen increased sales because of publicity associated with these claims. 2 The company manufactures a face shield that has been prone to crack. As a result. several serious injuries have been reported. The company is generally willing to settle each documented ciaim for $2ll.llllll. Currently. it is estimate that 45 such claims will be submitted and settled. 3 The company has issued a full product recall of the defective face shields. and expects to spend SHIELDED on issuing replacement shields. The new shields will not be distributed until the next scal year. 4 The company has been notied by a competitor that one of Came Max's camouage designs vioiates a copyright held by the competitor. The competitor is asking for a $2511lltlll paid up license to the use the design. Eamo Max disagrees. but believes that it is reasonably possible the competitor will le and win on a copyright infringement action. 5 _S_ubgeg_uen_t;_t;o_ year end [but before preparing nancial statements]. an employee was seriously injured by a fabric cutting machine. The company has agreed to a large nancial settlement with the employee. This payment will eliminate any hope ofprotability during the next several years