Problem: 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 financial statements, or (c) neither adjust nor disclose.
_____ 1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-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. Prolonged employee strike.
_____ 7. Loss of a significant customer.
_____ 8. Issuance of a significant number of shares of common stock.
_____ 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.