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The Peidmont Computer Company has brought legal action against ATC Corporation for alleged monopolistic practices in the development of software. The claim has been pending for two years, with both sides accumulating evidence to support their position. The case is now ready for trial. ATC corporation has offered to settle out of court for $500,000, but Piedmont is asking for $5,000,000. If financial statements must be issued prior to the court action, how should ATC reflect this contingent claim?

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Category:- Accounting Basics
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