E24-2 (Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the

E24-2 (Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events,indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financialstatements, or (c) neither adjust nor disclose.______ 1. Settlement of federal tax case at a cost considerably in excess of the amount expected atyear-end.______ 2. Introduction of a new product line.______ 3. Loss of assembly plant due to fire.______ 4. Sale of a significant portion of the company’s assets.______ 5. Retirement of the company president.______ 6. Issuance of a significant number of shares of common stock.______ 7. Loss of a significant customer.______ 8. Prolonged employee strike.______ 9. Material loss on a year-end receivable because of a customer’s bankruptcy.______ 10. Hiring of a new president.______ 11. Settlement of prior year’s litigation against the company.______ 12. Merger with another company of comparable size.

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