Pacific cruise lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.
required:
1. the likelihood of a payment occurring is probable, and the estimated amount is $1.29 million.
2. the likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.09 to $1.29 million.
3. the likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.29 million.
4. the likelihood of a payment occurring is remote, while the estimated potential amount is $1.29 million.

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.