The jury reached a verdict on September 15, 2020, and a judgment was ordered in favor of Midwest. The judgment required Dispensa to pay Midwest $18 million In November 2020, Dispensa filed a Notice of Appeal with the Court of Appeals. In August 2021, the Court of Appeals issued a ruling in favor of Dispensa's appeal and reversed the lower court's ruling on the matter. This meant that the Court of Appeals overturned the jury verdict and the $18 million judgment against Dispensa. . On January 6, 2022, Midwest filed a petition for a re-hearing before the same panel of appellate judges against the reversal of ruling by the Court of Appeals. On February 10, 2022, the appellate judges declined the petition for a re-hearing. On February 28, 2022, management of Dispensa determined this matter was closed upon discussions with legal counsel. Required: As explained in the Case Instructions, include any ASC citations within the text of your written response to each of the 3 requirements (not as footnotes, not as a citation list). 1. For the year-end December 31, 2018 financial statements, discuss whether Dispensa should record a liability, and if so, at what amount? 2. For the year-end December 31, 2020, financial statements, should Dispensa adjust its liability? If so, what amount should be recorded? Should the amount of the adjustment be considered a 2020 Income Statement reported event or a prior period adjustment to Retained Earnings? 3. Should Dispensa record any reduction of the previously recorded loss contingency in 2021 (upon the Court of Appeals overturning the verdict of the jury), or in 2022 (once the appellate judges declined Midwest's petition for a re-hearing)