Problem (10 Points) Hanover Todastre set and food products for preparing the December 31, 3021 financial stats fouet, the two was discovered relating to contingencies and power to this is financial statements were ind on April 1, 2022 Required: (A) Determine the appropriate reporting for each situation. Brietly explain your (B) Prepare any necessary Journal entries and state whether a disclosure mode is the 1. On November 12, 2021, a former employer filed a lawsuit against Hanover a discrimination and asking for damages of $750,000. At December 31, 2021. stovet's attorney indicated that the likelihood of losing the lawsuit was possible but tut probable On March 5, 2022, Hanover agreed to pay the former employee $125,000 in return for withdrawing the lawsuit