Which one of the following statements best describes a consolidated balance sheet? a. a balance sheet that includes the assets and liabilities of both the parent company and all of the subsidiaries controlled by the parent companyb. a balance sheet that includes the goodwill of both the parent company and all of the smaller companies purchased by the parent companyc. a balance sheet that includes not only the assets and liabilities of the parent company but also the retained earnings of the parent companyd. a balance sheet that reports both the replacement cost and the fair value of all property, plant, and equipment of the parent companye. a balance sheet that reports both the interest-bearing and the non-interest-bearing liabilities of the parent company

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it 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 believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.