p13-10 loss contingencies: entries and essay

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on november 24, 2014, 26 passengers on windsor airlines flight no. 901 were injured upon landing when the plane skidded off the runway. personal injury suits for damages totaling $9,000,000 were filed on january 11, 2015, against the airline by 18 injured passengers. the airline carries no insurance. legal counsel has studied each suit and advised windsor that it can reasonably expect to pay 60% of the damages claimed. the financial statements for the year ended december 31, 2014, were issued february 27, 2015.
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