Question
Contingent Liabilities : Evans & Sons, Inc., received notification from a local attorney that the company was being sued for $5,000,000 for patent infringement. A
Contingent Liabilities : Evans & Sons, Inc., received notification from a local attorney that the
company was being sued for $5,000,000 for patent infringement. A review of the situation by the
companys CEO led to the conclusion that Evans & Sons had indeed infringed upon the other com-
panys patented product. Nonetheless, the CEO thought the amount of $5,000,000 was excessive
and intended to litigate the issue. How should the lawsuit be reported in Evans & Sons annual
report?
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Principles Of Accounting Volume 1 Financial Accounting
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
1st Edition
1593995946, 978-1593995942
