On September 10, 2020, Vaughn Manufacturing incurred the following costs for one of its printing presses: Purchase of attachment   $58500 Installation of attachment   5400 Replacement parts for renovation of press   15200 Labor and overhead in connection with renovation of press   6500 Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized?     $85600.   $0   $79100.   $70400.

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.