Respuesta :
The correct option is (D) Amplify, Inc. would record a loss and contingent liability for $50,000, and Sound city would record nothing.
What is Sue?
- To take legal action against a person or organization, particularly by filing a legal claim for monetary damages as a result of some injury they have caused you.
- Example: He was so enraged by the letter's charges that he threatened to sue.
Option A is correct, but not when compared to option D.
Option D appears to be the best solution.
Therefore, the correct option is (D) Amplify, Inc. would record a loss and contingent liability for $50,000, and Sound city would record nothing.
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Correct answer:
Amplify, Inc. was sued by Sound City for $50,000. Sound City feels very confident that it will win the case and will be awarded the full amount. Amplify, Inc. feels it is probable that it will lose the case and pay Sound City the full amount. Which of the following is correct?
(A) Amplify, Inc. would record a loss and contingent liability for $50,000.
(B) Sound city would record a gain a lawsuit receivable for $50,000.
(C) Sound city would record nothing.
(D) Amplify, Inc. would record a loss and contingent liability for $50,000, Sound city would record nothing.
