Faculty Academic Press faces three potential contingency situations, described below. Faculty's fiscal year ends December 31, 2024.

In August 2024, a worker was injured in an accident, partially as a result of his own negligence. The worker has sued the company for $1.18 million. Legal counsel believes it is reasonably possible that the outcome of the suit will be unfavorable, and that the settlement would cost the company from $295,000 to $590,000.

A suit for breach of contract seeking damages of $2,900,000 was filed by a consultant on October 4, 2024. Legal counsel believes an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $1.450 million and $2.175 million. No amount within this range is a better estimate of potential damages than any other amount.

Faculty is the plaintiff in a pending court case. Its lawyers believe it is probable that Faculty will be awarded damages of $2.9 million.

Required: Determine the appropriate means of reporting each situation for the year ended December 31, 2024, and record any necessary entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions. For example, $5.5 million should be entered as 5,500,000.)