Brunswick Corporation is a multinational company that manufactures and sells marine and recreational products. A prior annual report contained the following information:LO 10-4LitigationA jury awarded $44.4 million in damages in a suit brought by Independent Boat Builders, Inc., abuying group of boat manufacturers and its 22 members. Under the antitrust laws, the damage awardhas been tripled and the plaintiffs will be entitled to their attorney’s fees and interest. The Companyhas filed an appeal contending the verdict was erroneous as a matter of law, as to both liability anddamages.Required:If Brunswick recorded a liability for $133.2 million (3 3 $44.4 million), which of the followingbest describes the likelihood of having to pay this amount: ( a ) probable, ( b ) reasonably possible,or ( c ) remote?
Brunswick Corporation is a multinational company that manufactures and sells marine and recreational products. A prior annual report contained the following information:
LO 10-4
Litigation
A jury awarded $44.4 million in damages in a suit brought by Independent Boat Builders, Inc., a
buying group of boat manufacturers and its 22 members. Under the antitrust laws, the damage award
has been tripled and the plaintiffs will be entitled to their attorney’s fees and interest. The Company
has filed an appeal contending the verdict was erroneous as a matter of law, as to both liability and
damages.
Required:
If Brunswick recorded a liability for $133.2 million (3 3 $44.4 million), which of the following
best describes the likelihood of having to pay this amount: ( a ) probable, ( b ) reasonably possible,
or ( c ) remote?
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