The following selected circumstances relate to pending lawsuitsfor Erismus, Inc. Erismus’s fiscal year ends on December 31.Financial statements are issued in March 2019. Erismus prepares itsfinancial statements according to U.S. GAAP. Required: Indicate theamount Erismus would record as an asset, liability, or not accruedin the following circumstances. 1. Erismus is defending against alawsuit. Erismus's management believes the company has a slightlyworse than 50/50 chance of eventually prevailing in court, and thatif it loses, the judgment will be $1,000,000. 2. Erismus isdefending against a lawsuit. Erismus's management believes it isprobable that the company will lose in court. If it loses,management believes that damages could fall anywhere in the rangeof $2,000,000 to $4,000,000, with any damage in that range equallylikely. 3. Erismus is defending against a lawsuit. Erismus'smanagement believes it is probable that the company will lose incourt. If it loses, management believes that damages willeventually be $5,000,000, with a present value of $3,500,000. 4.Erismus is a plaintiff in a lawsuit. Erismus's management believesit is probable that the company eventually will prevail in court,and that if it prevails, the judgment will be $1,000,000. 5.Erismus is a plaintiff in a lawsuit. Erismus’s management believesit is virtually certain that the company eventually will prevail incourt, and that if it prevails, the judgment will be $500,000.