Question

QueenB Not complete Marked out of ston Contingent Liabilities Evans & Sons, Inc. received notification from a local attorney that the company was being used for 5 000 000 for patent infringement. A review of the situation by the companys co led to the condusion that Ivars & Sons had indeed infringed upon the other company's patented product. Nonetheless, the CEO thought the amount of 5.000.000 was excessive and intended to the issue. How should the lowwit be reported in Evans son annual report? The lawsuit material, should be disclosed as a ty on the balance sheet The lawsuit, i material or not, doesn't need to be disclosed in the company's financial statements The lawsuit material should be disclosed in the notes to the company's financial statements only Check