Rich Networks Inc. is being sued by a competitor for infringing on one of its competitor's patents. The companys fiscal year end date is December 31. The suit for $95,000 was filed in court on January 30, 2020 before the company expects to submit its 2019 annual report to its regulatory body on February 25, 2020. The companys legal counsel estimates that the likelihood of damages being awarded to the competitor is 80%. How much contingent liabilities, if any, should be reported on the balance sheet in the companys 2019 annual report? If you think that the amount is zero, put 0. Otherwise, if you think that the amount is above zero, put that number in your answer.

I would think that the amount of contingent liabilities that could be report would be $95,000 since the likelihood of damages being awarded to the competitor is 80% and that the amount of $95,000 was given to us, am I right?