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In May 2021, Cruiser Company filed suit against Stallman, Inc.  seeking P850,000 damages for patent infringement.  A court verdict in November 2021 awarded Cruiser P600,000 in damages, but Stallman's appeal is not expected to be decided before 2021.  Cruiser's counsel believes it is probable but not virtually certain that Cruiser will be successful against Stallman for an estimated amount in the range between P300,000 and P450,000, with P400,000 considered the most likely amount.  What amount should Cruiser record as a contingent asset from lawsuit in the year ended December 31, 2021? None 300,000 400,000 600,000

In May 2021, Cruiser Company filed suit against Stallman, Inc.  seeking P850,000 damages for patent infringement.  A court verdict in November 2021 awarded Cruiser P600,000 in damages, but Stallman's appeal is not expected to be decided before 2021.  Cruiser's counsel believes it is probable but not virtually certain that Cruiser will be successful against Stallman for an estimated amount in the range between P300,000 and P450,000, with P400,000 considered the most likely amount.  What amount should Cruiser record as a contingent asset from lawsuit in the year ended December 31, 2021? None 300,000 400,000 600,000

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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In May 2021, Cruiser Company filed suit against Stallman, Inc.  seeking P850,000 damages for patent infringement.  A court verdict in November 2021 awarded Cruiser P600,000 in damages, but Stallman's appeal is not expected to be decided before 2021.  Cruiser's counsel believes it is probable but not virtually certain that Cruiser will be successful against Stallman for an estimated amount in the range between P300,000 and P450,000, with P400,000 considered the most likely amount.  What amount should Cruiser record as a contingent asset from lawsuit in the year ended December 31, 2021?

None
300,000
400,000
600,000
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