Question 1 (1 point) Amber's Diner is sued by a customer who contracted food poisoning from eating Sunny Side Up eggs at the restaurant. Amber will record a liability on its balance sheet related to the lawsuit if its legal counsel believes the likelihood of losing the lawsuit is: probable. remote. O reasonably possible. Question 2 (1 point) Torres Inc. issues 40,000 shares of its $0.05 par value common stock for $70 per share. The journal entry to record the stock issuance will include a: Credit to Additional Paid in Capital of $2,798,000. Debit to Common Stock of $2,000. Credit to Cash of $2,800,000. Credit to Common Stock of $2,800,000. Question 3 (1 point) The journal entry to record a stock dividend causes the Common Stock account to increase. True False Question 4 (1 point) Under current U.S. GAAP, liabilities related to operating lease obligations are shown on the balance sheet. True False