Company is being sued for copyright infringement

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Reference no: EM131065698

At the end of the current year, a company is being sued for copyright infringement. The outcome of the lawsuit is uncertain because the lawsuit has not been settled, but the company believes it is reasonably possible that it may have to pay $1,000,000 in damages. How should the company present this lawsuit in its financial statements this year?

Reference no: EM131065698

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