The following selected circumstances relate to pending lawsuits for a company. The company's fiscal year ends on December 31. Financial statements are issued in March of the following year. The company prepares its financial statements according to U.S. GAAP. Required: Indicate the amount the company would record as an asset, a liability or if no accrual would be necessary in the following circumstances. 1. The company is defending against a lawsuit. The company's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,880,000. 2. The company is defending against a lawsuit. The company's management believes it is probable that the company will lose in court. If it loses, management believes that damages could fall anywhere in the range of $2,620,000 to $5,240,000, with any damage in that range equally likely. 3. The company is defending against a lawsuit. The company's management believes it is probable that the company will lose in court. If it loses, management believes that damages will eventually be $5,540,000, with a present value of $3,878,000. 4. The company is a plaintiff in a lawsuit. The company's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,880,000. 5. The company is a plaintiff in a lawsuit. The company's management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $520,000. 1. 2. 3. 4. 5. Classification Amount