THESE ARE THE OPTIONS FOR QUESTIONS 1-6^

Scroll down to complete all parts of this task. For each of the following independent situations, select from the option list provided the appropriate effect, if any, on Company A's December 31, Year 3, financial statements. Each choice may be used once, more than once, or not at all. Situation Effect 1. On December 31, Year 3, Company A incurred a probable loss that can be reasonably estimated between $50,000 and $300,000. No amount within the range appears to be a better estimate than any other. 2. The occurrence of a gain contingency is probable and its amount can be reasonably estimated as $300,000. 5. On December 31, Year 3, Company A's management and legal counsel agree that it is probable that the company will have to pay $300,000 to settle a lawsuit against the company. 6. On December 31, Year 3, Company A's management and legal counsel conclude that it is reasonably possible that Company A will be held liable in a lawsuit that was brought by the local government for environmental damages, and that the reasonable estimate of the amount the company will need to pay to settle the suit is between $50,000 and $300,000. Select an option below Accrual of a liability of $50,000 Accrual of a liability of $175,000 Accrual of a liability of $300,000 O Disclosure in the notes but not an accrual O Neither an accrual nor a disclosure Recognition of an asset RESET CANCEL ACCEPT Scroll down to complete all parts of this task. For each of the following independent situations, select from the option list provided the appropriate effect, if any, on Company A's December 31, Year 3, financial statements. Each choice may be used once, more than once, or not at all. Situation Effect 1. On December 31, Year 3, Company A incurred a probable loss that can be reasonably estimated between $50,000 and $300,000. No amount within the range appears to be a better estimate than any other. 2. The occurrence of a gain contingency is probable and its amount can be reasonably estimated as $300,000. 5. On December 31, Year 3, Company A's management and legal counsel agree that it is probable that the company will have to pay $300,000 to settle a lawsuit against the company. 6. On December 31, Year 3, Company A's management and legal counsel conclude that it is reasonably possible that Company A will be held liable in a lawsuit that was brought by the local government for environmental damages, and that the reasonable estimate of the amount the company will need to pay to settle the suit is between $50,000 and $300,000. Select an option below Accrual of a liability of $50,000 Accrual of a liability of $175,000 Accrual of a liability of $300,000 O Disclosure in the notes but not an accrual O Neither an accrual nor a disclosure Recognition of an asset RESET CANCEL ACCEPT