In May 2020, ABC Company filed suit against XYZ Company seeking P1,900,000 damages for patent infringement. A court verdict in November 2020 awarded ABC P1,500,000 in damages but XYZ's appeal is not expected to be decided before 2021. ABC's counsel believes it is probable that ABC will be successful against XYZ for an estimated amount in the range between P800,000 and P1,000,000, with P1,000,000 considered as the most likely amount. What amount should ABC record as income from the lawsuit for the year ended December 31, 2020? a. 1,500,000 b. 1,100,000 c. 1,000,000 d. 0

In May 2020, ABC Company filed suit against XYZ Company seeking P1,900,000 damages for patent infringement. A court verdict in November 2020 awarded ABC P1,500,000 in damages but XYZ's appeal is not expected to be decided before 2021. ABC's counsel believes it is probable that ABC will be successful against XYZ for an estimated amount in the range between P800,000 and P1,000,000, with P1,000,000 considered as the most likely amount. What amount should ABC record as income from the lawsuit for the year ended December 31, 2020? a. 1,500,000 b. 1,100,000 c. 1,000,000 d. 0

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 22E

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