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The $800,000 of foreign pre-sales because they were "probable" not actual.
Answer: same situation with question number 1. Again, the amount of $800,000 is an amount that is a reasonable estimate of cash flow from foreign sales.
c. The loss of $2.1 million on the "Without Basinger" film.
Answer: Yes. Why would any producer produce a film in which they anticipate a loss? Would Main Line have made the movie if Sherilyn Fenn was the original actress to be casted for the lead role? So, it would not be proper to hold Kim Basinger liable for any loss incurred by Main Line for producing a movie that she did not even star in...
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