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In June, Year 1, Westchase Corporation became involved in product litigation. As a result of this litigation, it is probable that Westchase will have to

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In June, Year 1, Westchase Corporation became involved in product litigation. As a result of this litigation, it is probable that Westchase will have to pay $900,000. In August, a competitor commenced a suit against Westchase alleging violation of antitrust laws seeking damages of $100,000,000. Westchase denies the allegations, and the likelihood of Westchase paying any damages is remote. In September, Harris County brought action against Westchase for $9,000,000 for polluting. It is reasonably possible that Harris County will be successful, but the amount of damages Westchase will have to pay is not reasonably determinable. Westchase's tax rate is 40%. What amount, if any, should be accrued by a charge to income in Year 1? O A. $900,000 B. $109,000,000 C. $9,900,000 D. $109,900,000 Click to select your answer. ? show work

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