Required information The following information applies to the questions displayed below] Dow Chemical Company provides chemicol, plastic, and agricultural products and services to various consumer markets The following excerpt is taken from the disclosure notes of Dow's annual report. DOW CHEMICAL Notes to the Financial Statements (excerpt) Dow Chemical had accrued obligations of $381 million for environmental remediation and restoration costs, including $40 million for the temediation of Superfund sites. This is management's best estimate of the costs for cemediotion and restorotion with respect to environmental matters for which the Compary has accrued liabilities, although the ultimate cost with rospect to these particular matters could range up to twice that amount. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability. and evolving technologies for handing site remediation and restoration Required: 1. Does the excerpt describe a contungent liability? Yes or No 3. How did the $381 million affect Dows financial statements? Note: Amounts to be deducted should be indicated by a minus sign. Enter your answers in millions (1..e., $100,000,000 should be entered as $100 ). 2. Under what conditions would Dow report such a contingency? Multiple Choice Event is possible but amount cannot be reasonably estimated. Event is probable but amount cannot be reasonably estimated Event is possible and amount can be reasonably estimated Event is probable and amount can be reasonably estimated