Question 37 (30 points) Thompson Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Thompson's fiscal year ends December 31, and the 2021 financial statements are issued on March 15, 2022. a) Thompson is involved in a lawsuit resulting from a dispute with a supplier. On February 3, 2022, judgment was rendered against Thompson in the amount of $107 million plus interest, a total of $122 million. Thompson plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. (The first and second blank below relate to this situation) b) In November 2020, the State of Nevada filed suit against Thompson, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2022, Thompson reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probably that $140 million will be required to cover the cost of violations. Thompson believes that the ultimate settlement of this claim will not have a material adverse effect on the company. (The third and forth blank below relate to this situation.) c) Thompson is the plaintiff in a $200 million lawsuit filed against United Steel for damages due to lost profits from rejected contracts and for unpaid receivables. The case is in final appeal and legal counsel advises that it is probable that Thompson will prevail and be awarded $100 million. (The fifth and sixth blank below relate to this situation.) There 6 blanks below, two for each of the situations below. For each of the above situations, indicate the appropriate way to report each situation (do nothing, disclose only, accrue and disclose) in the first blank. In the second blank, indicate the amount to be accrued. If no amount is accrued, enter in the blank. All numerical answers must be in comma format and should not contain decimals or symbols (examples: 0; 1,000; 2,000,000; etc.). A/ AY AJ AJ