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PROBLEM 26-29 Contingencies urrod e ts PRODE 2021, Smith Company filed suit against West Company seeking damages Car patent infringement. In Smith's December 31, 2021 financial statements, how should this be reported? The choices are: 00 a. Accrue and disclose b. Disclose only Accrue onlyto emtin um lo yahtev sbives pim oqmil olanM 2'shaW L8OBIEW Se 31 MOL G C. d. Neither accrue nor disclose motau oRTE 01-2muimsig b bn Assume the following independent cases: 1. It is virtually certain that Smith would be successful against West for an estimated amount of P1,500,000. 2. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. 3. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. Before the financial statement was issued, 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 financially stable, has appealed only the P3,000,000 punitive damages. Counsel is unable to estimate the outcome of this appeal. . It is reasonably possible that Smith would be successful against West for an estimated amount of P1,500,000. oa bas

PROBLEM 26-29 Contingencies urrod e ts PRODE 2021, Smith Company filed suit against West Company seeking damages Car patent infringement. In Smith's December 31, 2021 financial statements, how should this be reported? The choices are: 00 a. Accrue and disclose b. Disclose only Accrue onlyto emtin um lo yahtev sbives pim oqmil olanM 2'shaW L8OBIEW Se 31 MOL G C. d. Neither accrue nor disclose motau oRTE 01-2muimsig b bn Assume the following independent cases: 1. It is virtually certain that Smith would be successful against West for an estimated amount of P1,500,000. 2. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. 3. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. Before the financial statement was issued, 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 financially stable, has appealed only the P3,000,000 punitive damages. Counsel is unable to estimate the outcome of this appeal. . It is reasonably possible that Smith would be successful against West for an estimated amount of P1,500,000. oa bas

Financial & Managerial Accounting
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
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PROBLEM 26-29 Contingencies a eurrod ed 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 moteo D o1 a. enuines EV sbive pio uoqm olanM 2shaW LBOBIEW Se 3I MOLA Assume the following independent cases: bauoa bas 1. It is virtually certain that Smith would be successful against West for an estimated amount of P1,500,000. 2. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. 3. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. Before the financial statement was issued, 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. IlauM WOLS
Transcribed Image Text:PROBLEM 26-29 Contingencies a eurrod ed 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 moteo D o1 a. enuines EV sbive pio uoqm olanM 2shaW LBOBIEW Se 3I MOLA Assume the following independent cases: bauoa bas 1. It is virtually certain that Smith would be successful against West for an estimated amount of P1,500,000. 2. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. 3. It is probable that Smith would be successful against West for an estimated amount of P1,500,000. Before the financial statement was issued, 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. IlauM WOLS
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