Please, only answer if you have the CORRECT ANSWER to the question. if your answer is wrong or irrelevant, I will REPORT it to Chegg and leave a thumb down. So please, check your answer before posting it$!$

The following items pertain to possible provisions:

a$.$ A company uses a part manufactured in Germany in its automobile manufacturing plant. There has been a concern about the failure

of this part in cars manufactured in Germany. No failures have occurred to date in Canada. The company decided to do a voluntary

recall of all cars manufactured with this part. The recall is $40\%$ complete and has cost $$1,250,000$ to date.

b$.$ A company self$-$insures for floods. That is$,$ it pays no insurance but is liable to replace assets lost through flood damage. No losses

have been incurred this year, but there have been $$225,000$ of losses in most other years, and the company is concerned that there

might well be $$450,000$ of losses next year, evening out the pattern.

c$.$ A company offers a three$-$year guarantee over parts and labour for products sold to ensure that parts work as expected. There were

no payments this year, and only $5\%$ of products sold this year are expected to need repairs in the next year. The cost of this work

would be in the range of $$125,000.$

d$.$ A company has been sued by a customer for $$1,050,000.$ The customer slipped on ice coming out of the store and claims the store

did not put salt down or clear the stairs properly. The company's lawyer has indicated that there is a $10\%$ chance that the company

will lose the lawsuit based on past history. The company, though, has decided to settle to avoid negative publicity. The costs of

settling are estimated to range between $$275,000$ and $$550,000.$

e$.$ A company is required by legislation to undertake environmental remediation for a mining site that is currently active. The site will

not be cleaned up until the mine closes, which is now scheduled for $23$ years from the current date. It is not certain how much the

cleanup will cost at that time, or how long it will take.

Required:

In each of the above cases, indicate whether a liability is recorded or not.