My score: $2\mathrm{.}3110$ pts $(23\mathrm{.}09\%)$

Freeman Motors, a motorcycle manulacturet, had the following contingencies. Determine the appropriate accourting treatment for each of the situations Freeman is facing.

a$.$ Freeman estimates that it is reasonably possible but not likely that it will lose a current lawsuit. Freeman's attorneys estimate the potential loss will be $$4,500,000.$

b$.$ Freeman received notice that it was being sued. Freeman considers this lawsuit to be frivolous.

c$.$ Freeman is currently the defendant in a lawsuit. Freeman believes it is likely that it will lose the lawsuit and estimates the damages to be paid will be $$75,000.$