The Widget Manufacturing Company purchased an Employee Dishonesty Coverage Form (Portfolio Crime Form A) with a $10,000 penalty on June 1, 2005, and canceled the bond on June 1, 2007. Which of the following losses would be covered and to what extent?

a. Employee A embezzled $5000 in 2004 and $5000 in 2006, the total $10,000 loss being discovered in January 2007.

b. EmployeeBembezzled $15,000 in 2006, but the loss was not discovered until January 2007.

c. Employees C and D embezzled $7500 each in a collusive loss during 1996, but the loss was not discovered until May 2007.