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At December 31, 2021 Daffodil Company has the following three separate lawsuits pending against it: Suit A-Plaintiffs seek damages of $50,000; it is remote that
At December 31, 2021 Daffodil Company has the following three separate lawsuits pending against it: Suit A-Plaintiffs seek damages of $50,000; it is remote that Daffodil will lose the suit. Suit B-Plaintiff seeks damages of $250,000; it is approximately 30% possible that Daffodil will lose the case; lawyers estimate the possible loss is $45,000. Suit C-Plaintiff seeks damages of $10,000: it is probable that Daffodil will lose the case: lawyers estimate that Daffodil will be liable for the full loss of $10,000. For Suit B, should Daffodil: Accrue and Disclose, Disclose Only, or Do Nothing? Accrue and disclose Disclose only Do nothing
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