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provided. (1). A competitor recently sued Bistro Cafes Inc. for a copyright infringement. Lawyers have determined it is very probable Bistro Cafes will lose
provided. (1). A competitor recently sued Bistro Cafes Inc. for a copyright infringement. Lawyers have determined it is very probable Bistro Cafes will lose the case, and estimate Bistro Cafes will have to pay between $75,000 to $162,000 In damages. Bistro Cafes applies ASPE. What entry, if any, should Bistro Cafes record in respect of this lawsuit? A. No entry is required as the amount to pay is uncertain. B. A debit to litigation expense and a credit to litigation liability of $75,000. C. A debit to litigation payable and a credit to litigation expense of $118,500. D. A debit to litigation expense and a credit to litigation liability of $162,000.
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