1. Hotspot Inc. is involved in a lawsuit as result of an accident that took place September 5, 2020. The lawsuit was filed on November 1,2020, and claims damages of $100,000. Instruments: Assume that at December 31, 2020, Hotspot's attorneys feel that there is a greater than 50% chance that Hotspot will lose the lawsuit and be required to pay $100,000. How should the company account for this lawsuit? b. Assume instead that at December 31, 2020, Hotspot's attorneys feel that there is less than 50% chance that Hotspot could lose the lawsuit and be required to pay $ 100,000. How should the company account for this lawsuit?? 5