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Reporting a Legal Contingency On November 5, Shipper Inc.'s vehicle was in an accident with...

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Reporting a Legal Contingency On November 5, Shipper Inc.'s vehicle was in an accident with another vehicle driven by R. Bell. Shipper received notice on January 12 of the following year of a lawsuit for $350,000 in damages for personal injuries suffered by Bell. The company's legal counsel believes it is probable that Bell will be awarded an estimated amount in the range between $100,000 and $225,000, and that $150,000 is a better estimate of potential liability than any other amount. The company's accounting year ends on December 31, and the current calendar year-end financial statements were issued on March 2 of the following year. a. What liability should the company accrue on December 31? b. How would your answer to (a) change if the company's legal counsel believes it is reasonably possible that Bell will be awarded a settlement? c. How would your answer to (a) change if the company's legal counsel believes there is only a remote possibility that Bell will be awarded a settlement

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