*Problem 13-11 Sheffield Corporation, in preparation of its December 31. 2017, financial statements, is attempting to determine the proper accounting treatment for each of the following situations. 1. As a result of uninsured accidents during the yee personal injury suits for368.500 and 556.300 heve been filed egainst the company. It is the Judgment of Sheffield's legal counsel that an unfavorable outcome is unlike|y 6,300 the $56.300 csebut that an unfavorable verdict approximating $253.900 wil he $368.500 cese 2. Sheffield owns a subsidiary in a foreign country that has a book velue of s5.563.000 and an estimated fair value of $9,477.200. The foreign government has communicated to Sheffield its intention to expropriate the assets and pproximeting s23.3o6 rpsso probebly result in t business of all foreign investors. On the basis of settle ents other firms heve received from this same country Sheffield expects to receive 40% of the fair value of its properties as final sett ement 3. Sheffield's chemical product division consisting of five plants is uninsurable because of the special risk of injury to employees and losses due to fire and explosion. The year 2017 is considered one of the safest (luckiest) in the division's history because no less due to injury or casualty was suffered Having suffered on average of three casualties a year during the rest of the past decade ranging from56.300 to $640,600 m anagement is certain that next year the company will probably not be so fortunate. (a) Prepare the journal entries that should be recorded as of December 31. 2017, to recognize each of the situations above. (f no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented swhen amount is entered. Do not indent manually.) No. 1. December 31, 2017 Date Account Titles and Explanstion Debit Credit 2. Decamber 31, 2017 3. December 31, 2017 Question Attempts: O of 7 used