You are the accountant in charge for auditing the books of C.J Penney for the year ended December 31, 2015. During your audit you discover the following independent transactions related to subsequent (post-balance-sheet) events all transactions are material in amount the financial statements will not be issued until February 21, 2016 For the accounting year 2015, indicate whether the company should adjust the financial statements disclose the information (GAAP disclosure) or neither adjust or disclose change in the company's advertising agency issuance of 100,000 shares of preferred stock on February 1, 2016 introduction of a new improved line of products On February 19, 2016 the company incurred a material loss of inventory due to flooding settlement of a state employment discrimination case in excess of the amount recorded on December 31, 2015 Announced on January 21. 2016 that they will merge with Giant Retailers, merger to be completed by July 2016 A liability estimated to be $850,000 at December 31.2015. is settled on January 19. 2016 for $975,000 Collection of an Accounts Receivable on February 5. 2018. that was written-off in 2015. Announcement by the company's CEO that he will be retiring tater this year. 10. Purchase of new computer system An IRS tax case is decided against the company on January A5.2016. The amount accrued for taxes at the end of 2015 was $1 7WI The case increases the tax to $2.9M On February 18. 2016, one of their retail stores is destroyed by a fire. 50.000 shares of Treasury stock are purchased on January A, 2016. On January 27, the company settles a litigation suit for $50M. As of December 31. S40M had been accrued. The company co-signs (guarantees) for a debt of one of its suppliers