A truck owned and operated by Lion Company was involved in an accident with an auto driven by Perle on February 12, 20A3. Lion received notice on April 4, 20A3 of a lawsuit for $700,000 damages for personal injuries suffered by Perle. Lion's counsel believes it is reasonably possible that Perle will win the lawsuit and will receive damages in the range between $100,000 and $400,000. No amount within this range is a better estimate of potential damages than any other amount. What amount of loss should Lion accrue at December 21, 20A3?

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17-06-2024
Business

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A truck owned and operated by Lion Company was involved in an accident with an auto driven by Perle on February 12, 20A3. Lion received notice on April 4, 20A3 of a lawsuit for $700,000 damages for personal injuries suffered by Perle. Lion's counsel believes it is reasonably possible that Perle will win the lawsuit and will receive damages in the range between $100,000 and $400,000. No amount within this range is a better estimate of potential damages than any other amount. What amount of loss should Lion accrue at December 21, 20A3?

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