Luge Co$.$ has various commitments and contingencies at December$31,$ Year$5,$ and events subsequent to December$31,$ Year$5,$ but prior to the issuance of the Year $5$ financial statements.

Select from the option list provided the correct reporting requirement for the commitments and contingencies below. A choice may be used once, more than once, or not at all.

Commitments and contingenciesReporting requirement$1.$On$$December$1,$Year$5,$Luge$$was$$awarded$$damages$$of$$$$75,000$in$$a$$patent infringement suit it brought against a competitor. The defendant did not appeal the verdict, and payment was received in January Year $6.$

$2.$ Luge has been sued by a former employee for wrongful dismissal. Luge's lawyers believe the suit to be without merit.

$3.$ At December $31,$ Year $5,$ Luge had outstanding purchase orders in the ordinary course of business for purchase of a raw material to be used in its manufacturing process. The market price is currently higher than the purchase price and is not anticipated to change within the next year.

$4.$ A government contract completed during Year $5$ is subject to renegotiation. Although Luge estimates that it is reasonably possible that a refund of approximately $$200,000$ to $$300,000$ may be required by the government, it does not wish to publicize this possibility.

$5.$ Luge has been notified by a governmental agency that it will be held responsible for the cleanup of toxic materials at a site where it formerly conducted operations. Luge estimates that it is probable that its share of remedial action will be approximately $$500,000.$

$6.$ On January $5,$ Year $6,$ Luge redeemed its outstanding bonds and issued new bonds with a lower rate of interest. The reacquisition price was in excess of the carrying amount of the bonds.