At December 31, Date Co. awaits judgment on a lawsuit for a competitor's infringement of Date's patent. Legal counsel believes it is probable that Date will win the suit and indicated the most likely award together with a range of possible awards. How should the lawsuit be reported in Date's December 31 financial statements? O A. In note disclosure only. By accrual for the most likely award. By accrual for the lowest amount of the range of possible awards. O D. Neither in note disclosure nor by accrual. O B. C.

At December 31, Date Co. awaits judgment on a lawsuit for a competitor's infringement of Date's patent. Legal counsel believes it is probable that Date will win the suit and indicated the most likely award together with a range of possible awards. How should the lawsuit be reported in Date's December 31 financial statements? A. In note disclosure only. B. By accrual for the most likely award. C. By accrual for the lowest amount of the range of possible awards. D. Neither in note disclosure nor by accrual