In 2XX1, Pasta Corporation is suing Pas-Tah Company for trademark infringement for $2 million. Pasta Corporation's legal counsel believes it is probable that Pasta Corporation will win the case, The Court will release the verdict on June 30, 2XX2, Pasta Corporation would will be awarded $2 million by the Court in 2XX2 On December 31, 2XX1, Pasta Corporation should: No Entry in 2XX1 No Disclosure in 2XX1 No Journal Entry, but the Company should add a disclosure to the Notes to the Financial Statements reporting the future probable gain Record a receivable for $2,000,000 and a Gain of $2,000,000, along with a disclosure in the Notes to the Financial Statements Record a receivable for $2,000,000 and a Gain of $2,000,000, No disclosure the Notes to the Financial Statements reposting the future probable gain

In 2XX1, Pasta Corporation is suing Pas-Tah Company for trademark infringement for $2 million. Pasta Corporation's legal counsel believes it is probable that Pasta Corporation will win the case, The Court will release the verdict on June 30, 2XX2, Pasta Corporation would will be awarded $2 million by the Court in 2XX2 On December 31, 2XX1, Pasta Corporation should: No Entry in 2XX1 No Disclosure in 2XX1 No Journal Entry, but the Company should add a disclosure to the Notes to the Financial Statements reporting the future probable gain Record a receivable for $2,000,000 and a Gain of $2,000,000, along with a disclosure in the Notes to the Financial Statements Record a receivable for $2,000,000 and a Gain of $2,000,000, No disclosure the Notes to the Financial Statements reposting the future probable gain

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 13MCQ

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