how should this be reported? The choices are: During 2021, Smith Company filed suit against West Company seeking damages for patent infringement. In Smith's December 31, 2021 financial statements, PROBLEM 26-29 Contingencies eurod 6 pouna thum wofl 000X129 a. Accrue and disclose b. Disclose only c. Accrue onlyto um to d. Neither accrue nor disclose moteu oSTE 01-2moimsig b amnir sbie pi muhoqmd olanM 2'shaW 6BOBIEW SO 1 M Assume the following independent cases: It is virtuallv certain that Smith would he bauoe bas inomirdani lelautM or an e It i- nrohahle that Smith TAould ho succoaful asainat West for ar mated an It nahable that Cmith vvould he successful against West ^. an estimated al. ed, Smith was awarded P1,000,000 and received full payment thereof. 4. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. After the financial statement was issued, Smith was awarded P1,000,000 and received full payment thereof. 5. During the year 2021, Smith won a litigation award for P1,500,000 which was tripled to P4,500,000 to include punitive damages. The defendant, who is financially stable, has appealed only the P3,000,000 punitive damages. Counsel is unable to estimate the outcome of this appeal. 0 It is reasonably possible that Smith would be successful against West for an estimated amount of P1,500,000.
how should this be reported? The choices are: During 2021, Smith Company filed suit against West Company seeking damages for patent infringement. In Smith's December 31, 2021 financial statements, PROBLEM 26-29 Contingencies eurod 6 pouna thum wofl 000X129 a. Accrue and disclose b. Disclose only c. Accrue onlyto um to d. Neither accrue nor disclose moteu oSTE 01-2moimsig b amnir sbie pi muhoqmd olanM 2'shaW 6BOBIEW SO 1 M Assume the following independent cases: It is virtuallv certain that Smith would he bauoe bas inomirdani lelautM or an e It i- nrohahle that Smith TAould ho succoaful asainat West for ar mated an It nahable that Cmith vvould he successful against West ^. an estimated al. ed, Smith was awarded P1,000,000 and received full payment thereof. 4. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. After the financial statement was issued, Smith was awarded P1,000,000 and received full payment thereof. 5. During the year 2021, Smith won a litigation award for P1,500,000 which was tripled to P4,500,000 to include punitive damages. The defendant, who is financially stable, has appealed only the P3,000,000 punitive damages. Counsel is unable to estimate the outcome of this appeal. 0 It is reasonably possible that Smith would be successful against West for an estimated amount of P1,500,000.
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Current Liabilities And Payroll
Section: Chapter Questions
Problem 10.5CP
Related questions
Question
Please answer the 4,5,6 only. Thanks.
Transcribed Image Text:PROBLEM 26-29 Contingencies a urrod edt
how should this be reported? The choices are:
During 2021, Smith Company filed suit against West Company seeking damages
for patent infringement. In Smith's December 31, 2021 financial statements,
000 X129
Accrue and disclose
b. Disclose only
C. Accrue only
d. Neither accrue nor disclose moteuo DE o1
a.
amnt
to
L8OBIEW SO 31 M
Assume the following independent cases:
It is virtuallv certain that Smith weuld L.
bauoe bas inomindani lelauM
or an
It ir probahle that Smith would he cuccosaf..laainat TAWost for ar -imated
an
It nahable that Cmith rvould he successful against West ^
an estimated
al.
ed, Smith was
awarded P1,000,000 and received full payment thereof.
4. It is probable that Smith would be successful against West for an estimated
amount of P1,500,000. After the financial statement was issued, Smith was
awarded P1,000,000 and received full payment thereof.
3. During the year 2021, Smith won a litigation award for P1,500,000 which
was tripled to P4,500,000 to include punitive damages. The defendant, who
is financially stable, has appealed only the P3,000,000 punitive damages.
Counsel is unable to estimate the outcome of this appeal.
0, It is reasonably possible that Smith would be successful against West for an
estimated amount of P1,500,000.
WOrs
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