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1 8 . a ) Your company is the defendant in a lawsuit. Your company s management believes it is reasonably possible that your company
a Your company is the defendant in a lawsuit. Your companys management believes it is
reasonably possible that your company will lose the lawsuit and have to pay $ million.
How should the contingent liability be accounted for? point
b Would you change your answer if your companys management believes it is probable
that your company will lose the lawsuit and have to pay damages in the range of $ to $
million with all amounts in this range considered equally likely How should the
contingent liability be accounted for? point
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