2. 3. As a result of uninsured accidents during the year, personal injury suits for $668,600 and $126,800 have been filed the company. It is the judgment of Flounder's legal counsel that an unfavorable outcome is unlikely in the $126,800 that an unfavorable verdict approximating $550,000 (reliably estimated) will probably result in the $668,600 case. Flounder owns a subsidiary in a foreign country that has a book value of $6,161,000 and an estimated fair value of $8,992,800. The foreign government has communicated to Flounder its intention to expropriate the assets and bus foreign investors. On the basis of settlements other firms have received from this same country, Flounder expects t receive 40% of the fair value of its properties as final settlement. Flounder's chemical product division consisting of five plants is uninsurable because of the special risk of injury to e and losses due to fire and explosion. The year 2025 is considered one of the safest (luckiest) in the division's history no loss due to injury or casualty was suffered. Having suffered an average of three casualties a year during the rest c