For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in notes, or (c) have no disclosure. \begin{tabular}{|l|} \hline 1. Cruz Company guarantees the $105,000 debt of a supplier. It is not probable that the supplier will default on the debt. \\ \hline 2. A disgruntled employee is suing Cruz Company. Legal advisers believe that the company will likely need to pay damages, \\ but the amount cannot be reasonably estimated. \end{tabular}