Identify Required Financial Statement Disclosures Practice Test

A for-profit public company is issuing annual GAAP financial statements and has guaranteed the debt of an unconsolidated joint venture that is a related party. The guarantee is material, and the maximum potential future payments under the guarantee are determinable. Under U.S. GAAP related party disclosures (FASB ASC 850), which financial statement note must include information about this arrangement?

A for-profit construction company is preparing annual GAAP financial statements and is a defendant in a lawsuit alleging defective work. Outside counsel indicates an unfavorable outcome is reasonably possible, but not probable, and the estimated loss range is $2 million to $6 million with no amount within the range a better estimate. Under FASB ASC 450, what information must be disclosed in the notes?