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Dwayne Company, a manufacturer of viagra has had a lawsuit filed against it by PROBLEM 26-28 Contingencies a Vic Incorporated, another manufacturer of viagra. The suit alleges patent infringements by Dwayne Company and asks for compensatory damages. For the following likely situations, determine how Dwayne Company shoula report the information concerning the lawsuit. The choices are: fnerassige Accrue and disclose b. Disclose only Accrue only d. Neither accrue nor disclose a. 1000 iM 000,000 S С.

Dwayne Company, a manufacturer of viagra has had a lawsuit filed against it by PROBLEM 26-28 Contingencies a Vic Incorporated, another manufacturer of viagra. The suit alleges patent infringements by Dwayne Company and asks for compensatory damages. For the following likely situations, determine how Dwayne Company shoula report the information concerning the lawsuit. The choices are: fnerassige Accrue and disclose b. Disclose only Accrue only d. Neither accrue nor disclose a. 1000 iM 000,000 S С.

FINANCIAL ACCOUNTING
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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Please answer only the 4,5,6. Thankyou.
the case is probable, the potential amount of the loss, based on reliable PROBLEM 26-28 Contingencies Vic Incorporated, another manufacturer of viagra. The suit alleges patent right Dwayne Company, a manufacturer of viagra has had a lawsuit filed against it by oru bec infringements by Dwayne Company and asks for compensatory damages. For the following likely situations, determine how Dwayne Company should report the information concerning the lawsuit. The choices are: a. Accrue and disclose combijeroq b. Disclose only Accrue only d. Neither accrue nor disclose 1000 iM 000,000,S9 С. Assume the following independent cases: 1. Dwavne Comnany's legal counsel estimates that the infringement case may re ? case as remote. 2. Dv - onvinced that the likelihood of losing th no P2,300.000. 3. stimated to be D- nt case may bed I TII a 10SS Of rz,TUU,UU0 put CONSIUETS tilE IKTIIuuu v- Ang the case lo as reasonably possible. red nd neol. 4. Dwayne Company's legal counsel is convinced that the likelihood of losing the case is probable, the potential amount of the loss, however, is currently undeterminable. 5. Dwayne Company's legal counsel is convinced that the likelihood of losing the case is probable, the potential amount of the loss, based on reliable brst evidence would be as follows: 20% that the liability would be P1,600,000; 50% that the liability would be at P2,000,000; 30% that the liability would be P2,400,000 6. Dwayne Company's legal counsel is convinced that the likelihood of losiig evidence would be around P1,500,000 to P3,000,000. 290 t:2.S ai ober InsTu IT
Transcribed Image Text:the case is probable, the potential amount of the loss, based on reliable PROBLEM 26-28 Contingencies Vic Incorporated, another manufacturer of viagra. The suit alleges patent right Dwayne Company, a manufacturer of viagra has had a lawsuit filed against it by oru bec infringements by Dwayne Company and asks for compensatory damages. For the following likely situations, determine how Dwayne Company should report the information concerning the lawsuit. The choices are: a. Accrue and disclose combijeroq b. Disclose only Accrue only d. Neither accrue nor disclose 1000 iM 000,000,S9 С. Assume the following independent cases: 1. Dwavne Comnany's legal counsel estimates that the infringement case may re ? case as remote. 2. Dv - onvinced that the likelihood of losing th no P2,300.000. 3. stimated to be D- nt case may bed I TII a 10SS Of rz,TUU,UU0 put CONSIUETS tilE IKTIIuuu v- Ang the case lo as reasonably possible. red nd neol. 4. Dwayne Company's legal counsel is convinced that the likelihood of losing the case is probable, the potential amount of the loss, however, is currently undeterminable. 5. Dwayne Company's legal counsel is convinced that the likelihood of losing the case is probable, the potential amount of the loss, based on reliable brst evidence would be as follows: 20% that the liability would be P1,600,000; 50% that the liability would be at P2,000,000; 30% that the liability would be P2,400,000 6. Dwayne Company's legal counsel is convinced that the likelihood of losiig evidence would be around P1,500,000 to P3,000,000. 290 t:2.S ai ober InsTu IT
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