FASB codification; Your client Wheeler, is involved with several situations. Wheeler´s fiscal year is the calendar year 2024, and the 2024 financial statements are issued on March 15, 2025.

1. Based on customer complaints about defective books, Wheeler started providing warranties against defects on most of its books in 2024. Industry statistics indicate that warranty costs are expected to approximate 2% of sales. Sales of warranted products during 2024 were $5.1 million and actual warranty expenditures were $50,000.

2. A 2022 contractual agreement with Brianna Inc. entitles Wheeler to $35 million for certain fees and expenses reimbursements. These amounts were written off as bad debts in 2023. Brianna Inc. has filed for bankruptcy. On February 19, 2025, the bankruptcy court ordered Brianna to pay $27 million immediately upon consummation of a proposed merger.
3. During 2024, a labor dispute erupted between Wheeler and its employees (the writers). Despite the labor union and Wheeler engaging in settlement talks in late 2024, no resolution has been reached (as of March 15, 2025). As the writers have been on strike, it is virtually certain that material costs will be incurred. However, the amount of possible costs cannot be reasonably determined.
4. Wheeler is involved in a suit filed in January 2025 by Carrie Corp. seeking $88 MILLION RELATED TO A PROPOSED JOINT VENTURE BETWEEN THE TWO COMPANIES. The suit alleges that Wheeler misstated the assets and liabilities used to calculate the purchase price for its sound book division. Legal counsel advises that it is reasonably possible that Williams could end up loosing an indeterminable amount not expected to have a material adverse effect on Wheeler´s financial position.

A) Locate the appropriate section in the FASB codification that provides guidance on reporting for Contingencies and Loss contingencies.
B) Determine the appropriate means of reporting each situation in the financial 2024 statements. Cite the codification to support your contentions. When incorporating the FASB guidance into your answers, please do the following. Provide some summary of the codification as well as a few direct quotes that are supported by specific citations.