The following selected clrcumstances relate to pending lawsults for Erismus, Incorporated Erismus's fiscal year ends on December 31. Financlal statements are Issued in March 2025. Erlsmus prepares its financlal statements according to U.S. GAAP. Required: Indicate the amount Erismus would record as an asset, a llability or if no accrual would be necessary In the following clrcumstances. 1. Erismus Is defending against a lawsult. Erismus's management belleves the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if It loses, the judgment will be $1,760,000. 2. ErIsmus is defending against a lawsult. Erismus's management belleves it is probable that the company will lose in court. If it loses, management belleves that damages could fall anywhere in the range of $2,720,000 to $5,440,000, with any damage in that range equally likely. 3. Erismus is defending against a lawsult. Erismus's management belleves it is probable that the company will lose in court. If it loses, management belleves that damages will eventually be $5,580,000, with a present value of $3,906,000. 4. Erismus is a plaintiff in a lawsult. Erismus's management belleves it is probable that the company eventually will prevall in court, and that if it prevalls, the judgment will be $1,760,000. 5. Erismus Is a plaintiff In a lawsult. Erismus's management belleves it is virtually certain that the company eventually will prevall In court, and that If It prevalls, the judgment will be $675,000