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November 25, 2022

CURRENT LIABILITIES AND CONTINGENCIES

CURRENT LIABILITIES AND CONTINGENCIES

Class, contingent liabilities present certain problems and opportunities for companies. You have been asked to help prepare the company’s annual report and a lawsuit has been brought against the company for $50 million. Your company counsel has indicated that the claim of liability may be questionable; however, if your company is determined to be liable, the amount sued for may or may not be reasonable. The question is then, what information should you include in your annual report and why?

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