The following selected circumstances relate to pending lawsuits for Erismus, Incorporated Erismus's

fiscal year ends on December $31.$ Financial statements are issued in March $2025.$ Erismus prepares its

financial statements according to U$.$S$.$ GAAP.

Required:

Indicate the amount Erismus would record as an asset, a liability or if no accrual would be necessary in

the following circumstances.

Erismus is defending against a lawsuit. Erismus'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 $$1,280,000.$

Erismus is defending against a lawsuit. Erismus'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 $$2,490,000$ to $$4,980,000,$ with any damage in that range equally likely.

Erismus is defending against a lawsuit. Erismus's management believes it is probable that the

company will lose in court. If it loses, management believes that damages will eventually be

$$5,710,000,$ with a present value of $$3,997,000.$

Erismus is a plaintiff in a lawsuit. Erismus's management believes it is probable that the company

eventually will prevail in court, and that if it prevails, the judgment will be $$1,280,000.$

Erismus is a plaintiff in a lawsuit. Erismus's management believes it is virtually certain that the

company eventually will prevail in court, and that if it prevails, the judgment will be $$626,000.$