The road runner club contributes money to senator sly's reelection campaign fund, and senator sly pass legislation to add more jogging paths across the state. from this we can definitively conclude: a. that political corruption has occurred.
b. that logrolling has occurred.
c. that a principal-agent problem has occurred.
d. nothing; the road runner club may have donated to senator sly because he already supported the jogging paths.

The following legal claims exist for m. finger co. identify the accounting treatment for each claim as either (a) a liability that is recorded or (b) an item described in notes to its financial statements. 1. m. finger (defendant) estimates that a pending lawsuit could result in damages of $1,250,000; it is reasonably possible that the plaintiff will win the case. an item described in notes to its financial statements. a liability that is recorded. 2. m. finger faces a probable loss on a pending lawsuit; the amount is not reasonably estimable. a liability that is recorded. an item described in notes to its financial statements. 3. m. finger estimates damages in a case at $3,500,000 with a high probability of losing the case. an item described in notes to its financial statements. a liability that is recorded. the amount that m. finger co. should record in its accounting records related to these suits is: