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way Travel filed suit against West Coast Travel seeking damages for copyright violations. Away Travel's legal counsel believes it is probable (but not certain) that Away Travel will win 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 Away Travel report this litigation?

Respuesta :

Answer:

As a disclosure only. No receivable is reported.      

Explanation:

            Away Travel is travel agency and Away Travel agency has filed a suit against another travel agency West Coast Travel agency.

           The legal counsel of Away Travel believes that they will win the litigation and will get a sum of money in the range of $100,000 to $200,000.

            So Away Travel should report this law suit as a disclosure only. Away Travel should released and submit their documents before the law. And no recovery of the money is reported.

Thus the answer is ---

As a disclosure only. No receivable is reported.    

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