Chapter 8, Problem 8.14E

To determine

(a)

Concept introduction:

Contingent Liabilities

Those liabilities which depends on the occurrence of any event in the future due to happening of any event in past is known as contingent liabilities. These liabilities may occur or may not be. An example of contingent liability is the pending lawsuit against company which if goes against can damage the company very much.

The effect of the contingent liabilities of $\$458,000,000$ on the accounts and financial statements.

To determine

(b)

Contingent Liabilities

Those liabilities which depends on the occurrence of any event in the future due to happening of any event in past is known as contingent liabilities. These liabilities may occur. An example of contingent liability is the pending lawsuit against company, which, if goes against, can damage the company very much.

The reason for recording contingent liabilities.