Presented below are several facts related to ABC Company. Assume that no mention of these facts was made in the financial statements and the related notes. Your job is to determine the appropriate accounting treatment and disclosure to the notes to the financial statements. You must be specific on what details should be included to the notes of the financial statements.

1. It is probable the contingency will result in a $100,00 loss, but it is reasonably possible the loss could be $500,000.
2. Equipment purchases of $275,000 were partly financed during the year through the issuance of a $150,000 notes payable. The company offset the equipment against the notes payable and reported plant assets at $125,000.
3. ABC Company has reported its ending inventory at $2,500,000 in the financial statements. No other information related to inventories is presented in the financial statements and related notes.
4. ABC company changed its method of valuing inventories from weighted-average to FIFO. No mention of this change was made in the financial statements.