Problem 9 CPA Co. adopts the calendar year as its reporting period. In the process of preparing the financial statements for the year ended December 31, 2021, you, as the entity's auditor, came across the following events that took place from January 1, 2022 to April 10, 2022. a. On March 15, 2022, CPA Co. received a court decision on a lawsuit filed against the company in January 2021. As of December 31, 2021, CPA Co. did not recognize a liability as a result of this case as based on legal counsel, it was not probable that the company will be found liable. On March 15, the court ordered CPA Co. to pay the amount of P2,000,000 to the plaintiff. Although CPA Co. intended to make an appeal, it is still considered probable that the CPA Co. will pay an amount between P1,500,000 to P2,000,000, with P2,000,000 considered to be the most probable amount. b. As a result of an uninsured accident during the year 2020, personal injury suit of P3,000,000 was filed against CPA Co. On December 31, 2020, the company recognized a provision of P2,500,000 as it was the judgment of the company's legal counsel than an unfavorable verdict would result in a loss. However, on April 2, 2022, the court rendered an executory decision requiring CPA Co. to pay P2,000,000 in settlement of the case. c. In February 2022, CPA Co. announced that it had entered into a definitive agreement to acquire RCE, Inc., a leader in mid-class property development. Under the agreement, CPA Co. has agreed to pay approximately P30 billion in case and issue bonds to shareholders of RCE, Inc. The acquisition is expected to be consummated in the last quarter of 2022, with the acquisition to be subjected to a regulatory review. d. Due to the pandemic during the first months of 2021, CPA Co. reassessed the performance of its product lines and operating units. On April 12, 2022, in a meeting by the board of directors, after a thorough discussion with the entity's shareholders in a general assembly, CPA Co. firmly decided the conversion of its hotel division into residential and commercial leasing. This will require payment for retrenchment of some, if not most of its hotel employees. Required: Identify for each of the events after the reporting period if adjusting or non-adjusting.