Indicate How Each Event Affects the Elements of Financial Statements

Essay

Indicate how each event affects the elements of financial statements.Use the following letters to record your answer in the box shown below each element.You do not need to enter amounts.Enter only one letter for each element.

-Sierra Mining is the defendant in a $3 million lawsuit involving damage to the environment.Sierra's attorneys have advised the company that the outcome of the lawsuit is probable,and the likely settlement will be $750 thousand.