Exercise 8-11 Analyze and record a contingent liability (LO8-5)

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Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2018 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $3.8 million. The fiscal year ends on December 31.

velue 1.00 points Exercise 8-11 Part 2 2. What loss, if any, should Top Sound report in its 2018 income statement? (Enter your answer in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).) Loss to be reported References eBook& Resources Worksheet Exercise 8-11 Part 2 Check my work volue: 1.00 points Exercise 8-11 Part 3 . What liability, if any, should Top Sound report in its 2018 balance sheet? (Enter your answer in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000)) Liability to be reported