ndicate 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 $50/50$ chance of eventually prevailing in court, and that if it loses, the judgment will be $$1,900,000.$

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 $$2,900,000$ to $$4,900,000,$ 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 $$5,900,000,$ with a present value of $$4,400,000.$

Erismus is a plaintiff in a lawsuit. Erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $$1,900,000.$

Erismus is a plaintiff in a lawsuit. Erismus$$s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $$950,000.$