Required:

1) Obtain the relevant authoritative literature on accounting for change in classification due to a change in probable settlement outcome using the FASB Accounting standards codification at the FASB website. Explain to Matt the basic treatment of the situation described. What is the specific citation that you would rely on in applying that accounting treatment? As well as prepare the journal entry to record the change in circumstance. From Pg 1156 research case 19-16 chapter 19