TU minutes 12 points Below are three independent situations. 1. In August 2019, a worker was inured in the factory in an accident partially the result of his own negligence. The worker has sued Richmond Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company from $250,000 to $500,000. 2. A suit for breach of contract seeking damages of $2,400,000 was filed by an author against McNeil Co. on October 4, 2019. McNeil's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $800,000 and $1,800,000. No amount within this range is a better estimate of potential damages than any other amount. 3. McCain is involved in a pending court case. McCain's lawyers believe it is probable that McCain will be awarded damages of $1,000,000. Instructions Discuss the proper accounting treatment, including journal entries and any required disclosures, for each situation. Give rationale for your answers