Read Discussion Case 17-29 in chapter 17 in your textbook.

There are four questions to answer in this assignment.

Question A How would the contingency be classified in the accounting literature, and how should it be accounted for?

Question B Would the amount be material to the financial statements?

Question C What additional evidence would you gather, and what kinds of representations should you require from the entity?

Questions D Should the investigation affect your opinion on those financial statements?