Indicate the amount Erismus would record as an asset, a liability or if no accrual would be necessary in the following circumstances.

Erismus is defending against a lawsuit. Erismus's management believes the company has a slightly worse than $\frac{50}{50}$ chance of

eventually prevailing in court, and that if it loses, the judgment will be $$2,500,000.$

Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it

loses, management believes that damages could fall anywhere in the range of $$3,500,000$ to $$5,500,000,$ with any damage in

that range equally likely.

Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it

loses, management believes that damages will eventually be $$6,500,000,$ with a present value of $$5,000,000.$

Erismus is a plaintiff in a lawsuit. Erismus's management belleves it is probable that the company eventually will prevail in court,

and that if it prevails, the judgment will be $$2,500,000$

Erismus is a plaintiff in a lawsuit. Erismus's management believes it is viltually ceitain that the company eventually will prevail in

court, and that if it prevalls, the judgment will be $$1,250,000.$