Potter Co. has the following contingencies, all resulting from lawsuits in progress during the current...
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Accounting
Potter Co. has the following contingencies, all resulting from lawsuits in progress during the current year:
Probable loss contingency $1,500,000
Reasonably possible loss contingency 500,000
Probable gain contingency 700,000
Reasonably possible gain contingency 300,000
Potter's accountant believes the financial statements will be misleading if the probable loss contingency is not disclosed. How much should be disclosed, and how much should be accrued in Potter's financial statements for the current year?
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