Question 1 Ted Co. is currently being sued for breach of contract. Ted's lawyers estimate the chance of losing the suit at 65%. If Ted loses, the payout will be between 150,000 and 200,000. Most likely, the suit will be settled right in the middle at $175,000. The court case is expected to drag on and likely won't be settled until 4 years from now and the prevailing discount rate is 5%. Required: (1) Calculate and journalize any provision for the lawsuit under IFRS, (2) Would your response be different under ASPE? Why? (3) Pretend that Ted was on the other side of the court case - i.e., he was suing and expecting with 70% certainty that he would receive $175,000 in four years. Would Ted record a contingent asset? How would the contingency be reported? Explain why.