Question 13 1 pts On March 1, year 1, a suit was filed against Dean Company for patent infringement. Dean's legal counsel believes an unfavorable outcome is probable, and estimates that Dean will have to pay between $500,000 and $900,000 in damages. However, Dean's legal counsel is of the opinion that $600,000 is a better estimate than any other amount in the range. The situation was unchanged when the December 31, year 1 financial statements were released on February 24, year 2. How much of a liability should Dean report on its balance sheet at December 31, year 1 in connection with this suit? O $0 O $500,000 O $600,000 O $900.000 Question 14 1 pts Pak Co's professional fees expense account had a balance of $82,000 at December 31, year 1, before considering year-end adjustments relating to the following: Consultants were hired for a special project at a total fee not to exceed $65,000. Pak has recorded $55,000 of this fee based on billings for work performed in year 1. The attorney's letter requested by the auditors dated January 28, year 2. indicated that legal fees of $6,000 were billed on January 15, year 2, for work performed in November year 1, and unbilled fees for December year 1 were $7.000. What amount should Pak report for professional fees expense for the year ended December 31, year 1? O $105,000 O $ 95,000 OS 88,000 S 82.000 Question 15 1 pts Office supplies were ordered by Dwyer Company from Orcutt Company on December 15. year 1. The terms of sale were FOB destination. Orcutt shipped the office supplies on December 28, year 1, and Dwyer received them on January 3, year 2. When should Dwyer record the account payable? O December 15, year 1. December 28, year 1. O December 31, year 1. January 3, year 2. Question 16 1 pts A retail store sells gift certificates that are redeemable in merchandise. When the gift certificate was sold for cash, a Deferred revenue account should be decreased. Deferred revenue account should be increased. Revenue account should be decreased. O Revenue account should be increased