Identify Whether Each of the Below Items Would Be a Known

Essay

Identify whether each of the below items would be a known, estimated, or contingent liability:
1. A manufacturing company offers a one-year warranty on their product.
2. A lawsuit has been filed against Voltage Energy, a private company, for polluting a creek in a local community. The amount is estimated at $125,000 and there is a 70%-95% likelihood of the obligation occurring.
3. ABC Co. purchased machinery for $125,000 paying $75,000 in cash and borrowing the remainder by signing a one-year 5% note payable.