Fred wants to be a lawyer. To achieve this goal, Fred realizes he will have to graduate from law school. He also knows that to go to law school, he will have to graduate from college. So, he decides that his first step toward his goal of being a lawyer is to apply to college. To solve his problem, Fred is using:

A. an analog

B. working backward

C. insight

D. subgoals

The following legal claims exist for m. finger co. identify the accounting treatment for each claim as either (a) a liability that is recorded or (b) an item described in notes to its financial statements. 1. m. finger (defendant) estimates that a pending lawsuit could result in damages of $1,250,000; it is reasonably possible that the plaintiff will win the case. an item described in notes to its financial statements. a liability that is recorded. 2. m. finger faces a probable loss on a pending lawsuit; the amount is not reasonably estimable. a liability that is recorded. an item described in notes to its financial statements. 3. m. finger estimates damages in a case at $3,500,000 with a high probability of losing the case. an item described in notes to its financial statements. a liability that is recorded. the amount that m. finger co. should record in its accounting records related to these suits is: