Contingency loss: A contingency loss is incurred by the company because of a future event, like litigation. As per conservative accounting principles, loss contingencies are reported on the balance sheet and footnotes of the financial statements. To write: A memo to JZ, the financial vice president of C.F. Corporation regarding the cost of violation of city construction code.

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Chapter 20, Problem 20.5BYP

To determine

Contingency loss:

A contingency loss is incurred by the company because of a future event, like litigation. As per conservative accounting principles, loss contingencies are reported on the balance sheet and footnotes of the financial statements.

To write: A memo to JZ, the financial vice president of C.F. Corporation regarding the cost of violation of city construction code.

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