Tori, a 23 year-old, is unemployed and afraid to leave her house. She has only left her house once in the past year. Her fear of leaving the house started about a year ago when she was in the supermarket and suddenly experienced a feeling of sheer terror. She felt like she was totally out of control and might die. She had two subsequent attacks, both when she was out of her house, and since then she has been afraid to go out. On the one occasion when she left her house in the past year, she insisted that her best friend accompany her and stay by her side until she returned home. Tori may suffer from .

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: