Three independent situations follow. (a) Situation 1: During 2023, Sheffield Inc. became involved in a tax dispute with the Canada Revenue Agency. Sheffield's tax lawyers have told management that Sheffield will likely lose this dispute. They also believe that Sheffield will have to pay the Receiver General for Canada between $2,000,000 and $2.6 million. After the 2023 financial statements were issued, the case was settled with the Canada Revenue Agency for $2.4 million. What amount, if any, should be reported as a liability for this contingency as at December 31, 2023, assuming that Sheffield follows ASPE Liability to be reported $