Away 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?
A) As a receivable for $100,000 with disclosure of the range.
B) As a receivable for $150,000 with disclosure of the range.
C) As a receivable for $200,000 with disclosure of the range.
D) As a disclosure only. No receivable is reported.
Answer: D
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.