The company is involved in 2 product liability lawsuits and a third lawsuit that the company brought against a competitor for patent infringement. At December 31 year 1, The companies attorney informed management of the following; it is probable that company will lose the product liability lawsuits, although the actual settlement could cost is low is $800,000 and as high as $2 million . It is possible that the company could lose $1 million in the second product liability lawsuit. It is probably that company will win the patent infringement case.

What should company report on it's December 31, year 1 balance sheet for these contingencies?

Year 1, the company's attorneys informed management o es It is probable that Far Out will lose one of the produ It is possible that the company could lose $1,000,00 er & It is probably that Far Out will win $500,000 in the pa What should Far Out report on its December 31, Year 1 bal OA. $3,000,000 contingent liability. B. $300,000 contingent liability C. $800,000 contingent liability. 0 D. $1.800.000 contingent liability Click to select your answer Previous DI De