The following items have occurred for Dowing Ltd during the financial year ended 30 June 2021. The financial statements will be authorised for issue on 22 August 2021.

1. Downing Ltd incurred 7500 of during the April-June 2021 quarter. Downing Ltd paid this amount on 28 July 2021
2. Future warranty repair costs that are expected to arise from products sold with warranties during the year ended 30 June 2021 are estimated at 160000
3. The court awarded damages against downing Ltd resulting form acourt case on copyright infringement, decided on 29 June 2021. the Judge has announced that the amount of damages will be set in September 2021. Downing Ltd has received advice from its lawyers that the amount of the damages is expected to be between 340000and 360000
4. Downing Ltd guaranteed a bank loan of 150000 for its subsidiary, Street Ltd. Street Ltd is currently solvent.

REQUIRED

1. Identify whether it would be liability, a provision, a contingent liability, or none of the above in the financial statements of Downing Ltd at 30 June 2021( 1 mark per scenario- 4 Marks in total) and

Briefly explain why