Question
Corporation B has a pending case in court and the financial advisor indicates that it is probable that it will have a favorable judgment and
Corporation B has a pending case in court and the financial advisor indicates that it is probable that it will have a favorable judgment and that it will receive compensation for an amount that fluctuates between 100 and 150. What is the accounting treatment corresponding to this situation?
A) journal entry recognizing the profit of 150,000
B) journal entry recognizing the 100,000 profit
c) journal entry recognizing the gain of 125,000
d) NOTHING IS DONE
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
11th Edition
1264229739, 9781264229734
