Problem 1 (Select FIVE of the six problems to complete.) Below are several independent items listed for which the outcome of events is unknown at year-end, December 31,2016. a. Smethport Company had a barge that leaked oil into the waters surrounding Alaska. The company's legal counsel believes that the outcome may be unfavorable but has not been able to estimate the costs of the possible loss. b. It is alleged by Smethport Company that Argo Company has infringed on its trademark, during a recent advertising campaign. Smethport is suing Argo and its legal experts believe that the suit will result in an award of $750,000 in Smethport's favor. c. Smethport offers 2 -year warranties on the equipment it sells and believes that 5% of its equipment will require warranty repairs. d. A $35 coupon, good for one year is offered by Smethport during December. At December 31 , approximately 10% of the coupons have been redeemed and it is estimated that there will be a total redemption rate of 45%. e. Smethport Company has been sued by the federal government for EPA violations. The company's legal counsel believes that there will be an unfavorable verdict and has made an estimate of the probable loss. Complete the table below by placing an X in the column indicating the correct treatment for each of the above items