Question #2 A customer (Soon Come) filed a lawsuit against Party Limited in December 2009. The customer is claiming damages amounting to $1,500,00 arising out of an alleged breach of contract. Party Limited's lawyer is of the opinion that the plaintiff's (customer's) claim against the company is unlikely to succeed. Another customer (Hard Luck) filed a lawsuit against Party Limited in December 2009. The customer is claiming damages amounting to $800,000 arising out of an alleged breach of contract. Party Limited's lawyer is of the opinion that the plaintiff's (customer's) claim against the company is unlikely to succeed. But the lawyer wants to settle this claim outside of the court system for a maximum of $200,000 to avoid bad publicity for the company. Party Limited's lawyer has started negotiations for a settlement with the lawyer representing Hard Luck. Party Limited year end is December 31, 2009. Party Limited financial statements for the year ended December 31, 2009 were approved by the Board of Directors on March30, 2010. Required: (a) Explain the accounting treatment for Soon Come lawsuit in the books of Party Limited for the financial year ended December 31, 2009. Support your answer with the relevant International Accounting Standard. (3 marks) (b) Explain the accounting treatment for Hard Luck lawsuit in the books of Party Limited for the financial year (8 marks) ended December 31,2009. Support your answer with the relevant International Accounting Standard.