Purchase Solution

Outcome of a lawsuit

Not what you're looking for?

Ask Custom Question

Your assignment is to write a 300-word e-mail memo to Jan describing how Calliope's accounts and financial statements will be affected by the following possible outcomes of the lawsuit. Your e-mail should answer the following questions:

? If Calliope's legal department thinks it is probable that the company will be found liable on the lawsuit, and the amount the company will be liable for can be reasonably estimated at $100,000, how should this item be treated in Calliope's accounts and financial statements.
? If Calliope's legal department thinks it is probable that Calliope will be found liable on the lawsuit, but cannot reasonably estimate the amount of damages that Calliope will be liable for, how should this item be treated in the Calliope's accounts and financial statements.
? If Calliope's legal department thinks it is reasonably possible that the company will be found liable on the lawsuit, but cannot reasonably estimate the amount of damages that Calliope will be liable for, how should this item be treated in Calliope's accounts and financial statements.
? If Calliope's legal department thinks it is remote that the company will be found liable on the lawsuit, how should this item be treated in Calliope's accounts and financial statements?

See attached file for full problem description.

Attachments
Purchase this Solution
Solution Summary

The solution explains the impact on the financial statements of the possible outcomes of a lawsuit.

Solution Preview

Your assignment is to write a 300-word e-mail memo to Jan describing how Calliope's accounts and financial statements will be affected by the following possible outcomes of the lawsuit. Your e-mail should answer the following questions:

? If Calliope's legal department thinks it is probable that the company will be found liable on the lawsuit, and the amount the company will be liable for can be reasonably estimated at $100,000, how should this item be treated in Calliope's accounts and financial statements.
? If Calliope's legal department thinks it is probable that Calliope will be found liable on the lawsuit, but cannot reasonably estimate the amount of damages that Calliope will be liable for, how should this item be treated in the Calliope's ...

Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • Multiple choice

    Loss of plant as a result of fire Changes in the quoted market prices of securities held as an investment Loss on an uncollectible account receivable resulting from a customer's major flood loss Loss on a lawsuit, the outcome

  • Problem 9-10 Contingent Liabilities Several independe

    A company is involved in an environmental cleanup lawsuit. The company's legal counsel believes that the outcome may be unfavorable but has not been able to estimate the costs of the possible loss. d.

  • Anti-Trust Case Against Microsoft Corporation

    In your discussion, include the reason for the lawsuit, the outcome of the trial, and how this lawsuit affected Microsoft and consumers.

  • Litigation and Arbitration

    If you decide to pursue a lawsuit, it is going to suck up huge chunks of time that could rob you and your company of weeks or even months of productivity.

  • Contingent liability

    Situation 3 Since the company is unsure of the outcome of the lawsuit, then a disclosure in the company's notes accompanying the financial statements is needed. Contingent liability is examined.

  • Tom inherited his father's landscaping business, and incorpo

    I'm a corporation; I have no personal liability!' Is Tom correct? Identify and discuss the legal principle that would be applied by a court to resolve this issue, and predict the outcome of the suit against Tom.

  • Decision Analysis Case Study

    If Focus wins the lawsuit against Discount and initiates a lawsuit against Forward, then Forward should settle the case out of court instead of going to trial. The expected cost for this strategy is $3424000.

  • Ethics and Legality: An Interesting Juxtposition

    Consider the situation of a person who is injured in the course of an attempted rape filing a lawsuit against the victim for the injury.

  • Company Lawsuits

    555528 Company Lawsuits Ultimate Company is a defendant in a lawsuit alleging damages of $3 billion.

  • Business Law

    The probable outcome of this is that the company would terminate Ben and also possibly bring a lawsuit against Ben in the court of law. The solution goes into a great amount of detail about the questions being asked.

View More Related Solutions