Lei, an accounting major, and Jim, a marketing major, are watching a Matlock rerun on latenight TV.
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Lei, an accounting major, and Jim, a marketing major, are watching a Matlock rerun on latenight TV. Of course, there is a murder and the suspect wants to hire Matlock as the defense attorney. Matlock will take the case but requires an advance payment of \(\$ 100,000\). Jim remarks that Matlock has earned a cool \(\$ 100,000\) without lifting a finger. Lei tells Jim that Matlock has not earned anything but has a \(\$ 100,000\) liability. Jim asks "How can that be?"
Required
Assume you are Lei. Explain to Jim why Matlock has a liability and when Matlock would actually earn the \(\$ 100,000\).
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