Away Travel filed suit against West Coast Travel seeking damages for copyright violations. West Coast Travel’s legal counsel believes it is reasonably possible that West Coast Travel will settle the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely. How should West Coast Travel report this litigation?

Are you having trouble answering the question “Away Travel filed suit against West Coast Travel seeking damages for copyright violations. West Coast Travel’s legal counsel believes it is reasonably possible that West Coast Travel will settle the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely. How should West Coast Travel report this litigation?”? If that’s the case, you don’t need to worry anymore. Azanswer has brought you the correct answer to your question.

Away Travel filed suit against West Coast Travel seeking damages for copyright violations. West Coast Travel’s legal counsel believes it is reasonably possible that West Coast Travel will settle the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely. How should West Coast Travel report this litigation?

A) As a liability for $100,000 with disclosure of the range.

B) As a liability for $150,000 with disclosure of the range.

C) As a liability for $200,000 with disclosure of the range.

D) As a disclosure only. No liability is reported.

Answer: D

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