A truck owned and operated by Abbott Company was involved in an accident with an auto driven by L. Costello on January 12, 2011. Abbott received notice on April 24, 2011, of a lawsuit for $800,000 damages for a personal injury suffered by L. Costello. Abbott's counsel believes it is probable that L. Costello will be successful against the company for an estimated amount in the range between $100,000 and $400,000. No amount within this range is a better estimate of potential damages than any other amount. It is expected that the lawsuit will be adjudicated in the latter part of 2012. What amount of loss should Abbott accrue at December 31, 2011?

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The Answer of A truck owned and operated by Abbott Company was involved in an accident with an auto driven by L. Costello on January 12, 2011. Abbott received notice on April 24, 2011, of a lawsuit for $800,000 damages for a personal injury suffered by L. Costello. Abbott's counsel believes it is probable that L. Costello will be successful against the company for an estimated amount in the range between $100,000 and $400,000. No amount within this range is a better estimate of potential damages than any other amount. It is expected that the lawsuit will be adjudicated in the latter part of 2012. What amount of loss should Abbott accrue at December 31, 2011?

A Truck Owned and Operated by Abbott Company Was Involved