1. In May 20x6, Caso Co. filed suit against Wayne, Inc. seeking P1,900,000 damages for patent infringement. A court verdict in November 20x9 awarded Caso P1,5000,000 in damages, but Wayne's appeal is not expected to be decided before 2x10. Caso's counsel believes it is probable that Caso will be successful against Wayne for an estimated amount in the range between P800,000 and P1,100,000, with P1,000,000 considered the most likely amount. What amount should Caso record as income from the lawsuit in the year ended December 31, 20x9? a. 0 b. 800,000 c. 1,000,000 d. 1,500,000 (AICPA)

1. In May 20x6, Caso Co. filed suit against Wayne, Inc. seeking P1,900,000 damages for patent infringement. A court verdict in November 20x9 awarded Caso P1,5000,000 in damages, but Wayne's appeal is not expected to be decided before 2x10. Caso's counsel believes it is probable that Caso will be successful against Wayne for an estimated amount in the range between P800,000 and P1,100,000, with P1,000,000 considered the most likely amount. What amount should Caso record as income from the lawsuit in the year ended December 31, 20x9? a. 0 b. 800,000 c. 1,000,000 d. 1,500,000 (AICPA)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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