Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships. a. The likelihood of a payment occurring is probable, and the estimated amount is $1.24 million.
b. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.04 to $1.24 million.
c. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.24 million.
d. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.24 million.

Required:
Record the necessary entry for the scenarios given above.

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.