Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.Required:For each of the following scenarios, determine the appropriate way to report the situation.Explain your reasoning and record any necessary entry.1. The likelihood of a payment occurring is probable, and the estimated amount is $1.3 million.2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.1 to $1.6 million.3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million.4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million.
Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.
Required:
For each of the following scenarios, determine the appropriate way to report the situation.
Explain your reasoning and record any necessary entry.
1. The likelihood of a payment occurring is probable, and the estimated amount is $1.3 million.
2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.1 to $1.6 million.
3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million.
4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million.
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