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Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275 Exercise 44
The following legal claims exist for Huprey 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. Huprey (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.
_____ 2. Huprey faces a probable loss on a pending lawsuit; the amount is not reasonably estimable.
_____ 3. Huprey estimates damages in a case at $3,500,000 with a high probability of losing the case.
_____ 1. Huprey (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.
_____ 2. Huprey faces a probable loss on a pending lawsuit; the amount is not reasonably estimable.
_____ 3. Huprey estimates damages in a case at $3,500,000 with a high probability of losing the case.
Explanation
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Accounting for Contingent Liabilities wi...
Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
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