Raul goes to a psychotherapist because he is suffering from insomnia. The therapist asks him to relax by lying on a couch and encourages him to talk about anything that comes to his mind. The therapist does not use hypnosis. Through this process, the therapist hopes to gain an insight into the unconscious processes in Raul's mind. The therapist is using the technique of .

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: