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March 2015, Agency A is taking legal action against its competitor for patent infringement relating to a patent that had been granted to the agency on one of its products. The outcome of the case is uncertain.  However, it is probable that the court will order the competitor to pay damages to the entity.  - State whether a contingent liability or contingent asset exists. - Explain your answers by stating the criteria of your answers below

March 2015, Agency A is taking legal action against its competitor for patent infringement relating to a patent that had been granted to the agency on one of its products. The outcome of the case is uncertain.  However, it is probable that the court will order the competitor to pay damages to the entity.  - State whether a contingent liability or contingent asset exists. - Explain your answers by stating the criteria of your answers below

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing
Section: Chapter Questions
Problem 9Q
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On March 2015, Agency A is taking legal action against its competitor for patent infringement relating to a patent that had been granted to the agency on one of its products. The outcome of the case is uncertain.  However, it is probable that the court will order the competitor to pay damages to the entity. 

- State whether a contingent liability or contingent asset exists.
- Explain your answers by stating the criteria of your answers below.

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