Skill Hardware is the plaintiff in a $16 million lawsuit filed against a supplier. The litigation is in final appeal and legal counsel advises that it is virtually certain that Skill will win the lawsuit and be awarded $12 million. How should Skill account for this event?
1. the contingency is accured
2. The contingency is not accrued.
3. This is a gain contingency.
4. This is a loss contingency.
5. It is probable that the confirming event will occur.
6. The contingency can be reasonably estimated.
7. A disclosure note should describe the contingency
8. none of these
