At December 31, 2015, ABC Company Has the Following Three

question 2

Essay

At December 31, 2015, ABC Company has the following three separate lawsuits pending against it: Suit A-Plaintiffs seek damages of $40,000; Suit B-Plaintiff seeks damages of $200,000; and Suit
C-Plaintiff seeks damages of $20,000.
ABC management and legal counsel have made the assessments indicated below.For each suit, taking into account the assessment, you are to (a)give the accrual entry if it is required (if not, state why)and (b)indicate whether a disclosure note is required and explain the reason.
CASE A-Remote that ABC will lose the suit.
(a)Accrual entry:
(b)Disclosure note Yes
________No.

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Definitions:

Expanding Store

An expanding store refers to a retail business that is increasing its physical size or number of locations to accommodate more customers or provide a wider range of products and services.

Optimize Growth

Refers to strategies or approaches aimed at maximizing the rate of growth of an economy, organization, or specific area of development.

Annual Profit

The total earnings or surplus of an organization, company, or individual after all expenses and costs are deducted from total revenues over one year.

Strategy Cooperation

A cooperative approach in strategic decision-making where entities align their strategies for mutual benefit.