Question
Amos Co. is the defendant in several lawsuits: Estimated probability of loss Estimated amount of loss Lawsuit #1 5% $23 million Lawsuit #2 35% $13
Amos Co. is the defendant in several lawsuits:
| Estimated probability of loss | Estimated amount of loss | |
| Lawsuit #1 | 5% | $23 million |
| Lawsuit #2 | 35% | $13 million |
| Lawsuit #3 | 80% | $0 to $16 million |
| Lawsuit #4 | 95% | $2 to $9 million |
What is the total minimum amount of liability that Amos must accrue for these pending lawsuit? Report your answer in millions of dollars (i.e., enter "5" for $5 million.)
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As per US GAAP contingent liabilities must be recognised if there is ...
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Horngrens Accounting
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
10th Canadian edition Volume 1
978-0134213101, 134213106, 133855376, 978-0133855371
