REQUIRED:	Determine the appropriate way to report each situation, and prepare any
	necessary journal entry and disclosure note for Gibson Corporation.
	Explain your reasoning.
	Assume December 31, 2022 year-end and assume March 15, 2023 is the date the
	financial statements are issued.
3-1	In December 2022, the State of Wisconsin filed suit against Gibson Corporation
	seeking penalties for violation of OSHA rules. Based upon discussions with legal
	counsel, Gibson feels it is probable that $50 million will be required to cover the
	cost of the violation. Gibson believes that the ultimate settlement with OSHA
	will not materially impact the company.
3-2	Gibson Corporation is the plaintiff in a $20 million lawsuit filed against a
	customer for damages due to lost profits from uncompleted contracts and unpaid
	receivables. The case is in final appeal and legal counsel advises that it is
	probable that Gibson Corporation will prevail and be awarded $10 million.
3-3	On March 1, 2023, Gibson Corporation knows a competitor has threatened
	litigation due to patent infringement. The competitor has not yet filed a lawsuit.
	Gibson management believes a lawsuit is reasonably possible, and if a lawsuit
	is filed, management believes damages up to $4 million are reasonably possible.