Instructions Discuss how the preceding post-balance-sheet events should be reflected in the 2008 financial statements E4-14 (Post-Balance-Sheet Events) For each of the following subsequent events,in. dicate whether a company should adjust the financial statements, (b) disclose in notes to the financial state ments, or (c) neither adjust nor disclose. 1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end 2. Introduction of a new product line