ClaimsRUs Corp. is the defendant in three lawsuits:
Claim 1: It is possible that the lawsuit will be successful. Damages are estimated at $1.5 million.
Claim 2: It is probable that this lawsuit will be successful. Damages cannot be reasonably estimated as yet.
Claim 3: It is probable that this lawsuit will be successful. Damages are estimated at $1 million.
Required: Identify the accounting treatment for each claim.