On November 1, 2017, Blessy company was awarded a judgement of 1,500,000 in connection with a lawsuit. The decision is being appealed by the defendant and it is expected that the appeal process will be completed by the end of 2018. The attorney believed that it is highly probable that an award will be upheld on appeal but the judgement may be reduced by 40%. What amount should be reported as a receivable on December 31, 2017?

On November 1, 2017, Blessy company was awarded a judgement of 1,500,000 in connection with a lawsuit. The decision is being appealed by the defendant and it is expected that the appeal process will be completed by the end of 2018. The attorney believed that it is highly probable that an award will be upheld on appeal but the judgement may be reduced by 40%. What amount should be reported as a receivable on December 31, 2017?

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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