In May 2019, Caso Company filed suit against Wayne Company seeking P1,900,000 damages for patent infringement. A court verdict in November 2019 awarded Caso P1,500,000 in damages, but Wayne’s appeal is not expected to be decided before 2020. Caso’s counsel believed 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 for the year ended December 31, 2019?  a. 1,500,000 b. 1,100,000 c. 1,000,000 d. 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In May 2019, Caso Company filed suit against Wayne Company seeking P1,900,000 damages for patent infringement. A court verdict in November 2019 awarded Caso P1,500,000 in damages, but Wayne’s appeal is not expected to be decided before 2020. Caso’s counsel believed 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 for the year ended December 31, 2019? 

a. 1,500,000
b. 1,100,000
c. 1,000,000
d. 0

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