Erika is quite a character. In almost every situation she is very dramatic, constantly calling attention to herself. At events where others are the focus, she engages in manipulative strategies to make people pay attention to her instead, and never seems to apologize for stealing the spotlight. Erika's behaviors have caused her to lose friendships and several family members have distanced themselves from her because of these patterns. Erika may suffer from personality disorder.

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: