Soft$-$Sell is the defendant in numerous lawsuits claiming unfair trade practices. Soft$-$Sell has $2$ strong incentives to not disclose these contingent liabilities. However, GAAP requires that companies report their contingent liabilities.Required$1.$ Why would a company prefer not to disclose its contingent liabilities?$2.$ Describe how a bank could be harmed if a company seeking a loan did not disclose its contingent liabilities$\mathrm{.}3.$ What ethical tightrope must companies walk when they report contingent liabilities?