This paper circulates around the core theme of In August, 2012 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Crusher Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and th together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
2. Below are three independent situations.
a. In August, 2012 a worker was injured in the factory in an accident
partially the result of his own negligence. The worker has sued Crusher
Co. for $800,000. Counsel believes it is reasonably possible that the
outcome of the suit will be unfavorable and that the settlement would
cost the company from $250,000 to $500,000.
b. A suit for breach of contract seeking damages of $2,400,000 was filed by an
author against Parker Co. on October 4, 2012. Parker’s legal counsel
believes that an unfavorable outcome is probable. A reasonable estimate
of the award to the plaintiff is between $600,000 and $1,800,000. No
amount within this range is a better estimate of potential damages than
any other amount.
c. Rose is involved in a pending court case. Rose’s lawyers believe
it is probable that Rose will be awarded damages of $1,000,000.
Instructions
Discuss the proper accounting treatment, including any required
disclosures, for each situation. Give the rationale for your answers.
