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Fox Co. is a defendant in a lawsuit that could result in a large payment to the plaintiff. Fox's attorney believes that there is a
Fox Co. is a defendant in a lawsuit that could result in a large payment to the plaintiff. Fox's attorney believes that there is a 90% chance that Fox will lose the suit, and estimates that the loss will be anywhere from $5,000,000 to $20,000,000 and possibly as much as $30,000,000. None of the estimates are better than the others. What amount of liability should Fox report on its balance sheet related to the lawsuit?
$4,500,000
$0
$5,000,000
$30,000,000
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