Zeus power has brought suit against Regional Supply in the amount of $825,000 for patent infringement. As

Question:

Zeus power has brought suit against Regional Supply in the amount of $825,000 for patent infringement. As of December 31, the suit is in process, and the attorneys have determined that there is a greater than 50 percent chance that Zeus power will win the entire $825,000.
a. How should Zeus power account for this situation?
b. How should Regional Supply account for the situation? Briefly describe some of the factors that might affect how Regional Supply chooses to account for this situation.
c. Why would the two companies account for the same facts in different ways?