The following independent situations represent various types of liabilities:

1. Marshall Company has a manufacturing plant located in a small, rural community. The only other major employer in the area is Baker Company, which is experiencing financial problems. Marshall agrees to guarantee a loan for Baker, so Baker will remain in the community. Baker will receive all the proceeds of the loan. However, Marshall will have to repay the loan if Baker fails to do so. Marshall believes that Baker will repay the loan.

2. The village of High Creek and the town of Middlebury have been jointly using a rural dump site for 25 years. The state Department of Natural Resources has notified the two municipalities that wells on the nearby farms are polluted and that the dump site will be closed while further testing is done. Cleanup could cost as much as \(\$ 25\) million.

3. Two people walking on the sidewalk in front of the building owned by First United Bank were injured when part of the building collapsed on them. They are 25 years old and both are totally disabled. The building had been in poor condition for a long time. Insurance coverage is minimal. Both are suing First United Bank, and a jury trial is scheduled.

4. Winters Company sells garden tractors through 120 dealers located throughout the United States. Winters provides a two-year warranty for all parts and labor on these tractors. Each year, the average warranty cost per tractor sold is approximately \(\$ 40\).

5. Cronnin Company signed a 90 -day note when it bought a new delivery truck for \(\$ 25,000\).

6. The CPA firm of Boyd and Lampe is being sued by one of the owners of an audit client that went bankrupt three years after Boyd and Lampe conducted an audit. The CPA firm has no insurance for this type of lawsuit. The attorneys for the CPA firm have stated that similar cases have never been successful, and they expect the same result here.

Required 

Prepare a multicolumn analysis that presents the following information for each of these situations:

a. Number of the situation.

b. Type of liability: (1) noncontingent or (2) contingent.

c. Accounting treatment: (1) record in accounts, (2) disclose in a note to the financial statements, or (3) neither record nor disclose.