Household Solutions manufactures kitchen storage products. During the year, the company became aware of potential costs due to

(1) a recently filed lawsuit for patent infringement for which the probability of loss is remote and damages can be reasonably estimated,
(2) another recently filed lawsuit for food contamination by the plastics used in Household Solutions’ products for which a loss is probable but the amount of loss cannot be reasonably estimated, and
(3) a new product warranty that is probable and can be reasonably estimated. Which, if any, of these costs should be accrued?

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