Short Answer Question 1 Financial disclosures The purpose of this exercise is to introduce you to financial disclosures and familiarize you with the FASB Accounting Standards Codification. Identify the specific Codification topic, subtopic, section, and paragraph in answering the following questions. (a) Who are considered related parties of a company? Describe the disclosures required for related party transactions. Can receivables from employees be included in accounts and other receivables on the balance sheet? Cite the relevant ASC references. (b) The fiscal year end for lggy Corporation is December 31. The company's 2016 financial statements were issued on February 15, 2017. The following events occurred between December 31, 2016 and February 15, 2017. All amounts are material. Refer to the Accounting Standards Codification and determine the appropriate treatment of each of these events in the company's 2016 financial statements. 0) On January 11, 2017, the company negotiated a $20 million long-term note with Westchester Bank. i) On January 25, 2017, a major customer of the company declared bankruptcy. The customer owed the company $500,000. ii) On February 10, 2017, a flood destroyed one of the company's factories, causing $800,000 of uninsured damage. (c) What is the definition of a contingency? What is the general rule of recognizing a gain contingency? What is the general rule of recognizing a loss contingency? Cite the relevant ASC references. In your opinion, how does the differential treatment of gain and loss contingencies relate to faithful representation