The following selected circumstances relate to pending lawsuits for Elements Company for the year ending December 31, 2019 or prior to the issuance of its financial statements on April 1, 2020 Instructions Indicate the dollar amount of the asset or liability that Element should record at December 31, 2019 At December 31, Elements is defending against a lawsuit Elements management believes that it is reasonably possible that the company will not prevail in court If it loses, the judgement will be $1,000,000 At December 31, Elements is defending against a lawsuit Elements 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 $2,000,000 to $4,000,000, with any damage in that range equally likely At December 31, Elements is defending against a lawsuit Elements management believes it is probable that the company will lose in court If it loses, management believes that damages will eventually be $5,000,000 At December 31, Elements is a plaintiff in a lawsuit Elements management believes it is probable that the company will eventually prevail in court, and that if it prevails, the judgment will be $1,000,000 Prior to the issuance of its financial statements, Elements is defending against a lawsuit resulting from an employees injury on January 20, 2020 Elements management believes it is probable that the company eventually will lose in court and that damages will eventually be $250,000

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The following selected circumstances relate to pending lawsuits for Elements Company for the year ending December 31, 2019 or prior to the issuance of its

The following selected circumstances relate to pending lawsuits for Elements Company for the year ending December 31, 2019 or prior to the issuance of its financial statements on April 1, 2020.

Instructions: Indicate the dollar amount of the asset or liability that Element should record at December 31, 2019.

At December 31, Elements is defending against a lawsuit. Elements management believes that it is reasonably possible that the company will not prevail in court. If it loses, the judgement will be $1,000,000.

At December 31, Elements is defending against a lawsuit. Elements 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 $2,000,000 to $4,000,000, with any damage in that range equally likely.

At December 31, Elements is defending against a lawsuit. Elements management believes it is probable that the company will lose in court. If it loses, management believes that damages will eventually be $5,000,000.

At December 31, Elements is a plaintiff in a lawsuit. Elements management believes it is probable that the company will eventually prevail in court, and that if it prevails, the judgment will be $1,000,000.

Prior to the issuance of its financial statements, Elements is defending against a lawsuit resulting from an employees injury on January 20, 2020. Elements management believes it is probable that the company eventually will lose in court and that damages will eventually be $250,000.