Problem 1: Mirae Technologies is sued by Alexander Industries in February, Year 1 over a contract dispute. At December 31, Year 1, the case is still pending before the court. The jury is expected to deliver a verdict sometime in Year 2. Jackson's legal counsel estimates it is more likely than not Jackson will lose. At December 31, Year 1, does Mirae have a liability? Put another way, should Mirae record a liability for a case it may lose that has not yet been decided? If not, is there ever a liability Mirae should recognize? When?