Question 6 (of 10) value 9.09 points Problem 13-6 Various contingencies [L013-5, 13-61 Eastern Manufacturing is involved with several situations that possibly involve contingencies Each is descrbed below. Eastern's fiscal year ends December 31, and the 2016 financial statements are issued on March 15, 2017 a Eastern is involved in a lawsuit resulting from a dispute with a supplier On February 3, 2017, judgment was rendered against Eastern in the amount of $118 miltion plus interest a total of $133 million. Eastem 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 b. In November 2015, the State of Nevada fied suit against Eastern, seeking chvil penaities and injunctive On January 12, 2012 rellef for violations of environmental laws regulating hazard reached a settlement with state authorities. Based upon discussions with legal counsel the feels it is probable that $151 million will be required to cover the cost of violations Eastern believes that the ultimate settlement of this claim wil not have a material adverse effect on the company e Company C Eastern is the plaintiff in a $211 milion lawsuit fied against United Steel for damages due to lost profits from rejected contracts and for unpaid that it is probable that Eastern will prevail and be awarded $100 milion The case is in final appeal and legal counsel advises d At March 15, 2017, Eastem knows a compettor has threatened idigation due to patent The compettor has not yet fled a lawsuit Management believes a lawsuit is reasonably possible, and ida lawsuit is filed, managemient believes damages of up to $44 million are reasonably possibie Required: 2-a Prepare the appropriate journal entries for these situations it no etryis required tor a sactionievent, setect -No joumal entry required in the Drst accot theld. Fateou answers whole doltrs)