amount of estimated liability to be recognized
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 6P
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Question
In May 2019, Eastern company became involved in litigation. In Dec. 2019, the court assessed a judgement for 1,600,000 against Eastern Company. The entity is appealing the amount of the judgement. Its attorneys believed it is probable that they can reduce the assessment on appeal by 50%. The appeal is expected to take at least a year. What is the amount of estimated liability to be recognized in 2019?
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