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Company A was involved in a lawsuit in 2019. The expected settlement amount is $1 million. What is the amount (1) accrued and (2) disclosed
Company A was involved in a lawsuit in 2019. The expected settlement amount is $1 million. What is the amount (1) accrued and (2) disclosed by Company A if they determined that:
1. It was probable that they would lose the lawsuit
2. It was reasonably possible that they would lose the lawsuit
3. It was remotely possible that they would lose the lawsuit
Record journal entries when necessary.
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