Q1. Why and how do we treat gain and loss contingency differently? Explain in your own words. Write within one page. [Marks: 12] Q2. Grace Co. includes one coupon in each bag of cat food it sells. In return for 4 coupons, customers receive a cat toy that the company purchases for $1.50 each. Grace's experience indicates that 60 percent of the coupons will be redeemed. During 2020, 100,000 bags of cat food were sold, 12,000 toys were purchased, and 40,000 coupons were redeemed. During 2021, 120,000 bags of cat food were sold, 16,000 toys were purchased, and 60,000 coupons were redeemed. Instructions [Marks: 12] Determine the premium expense to be reported in the income statement and the premium liability on the balance sheet for 2020 and 2021