28) During January 2020, Queenie Company won a litigation award for P1,500,000 that was tripled to...

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28) During January 2020, Queenie Company won a litigation award for P1,500,000 that was tripled to P4,500,000 to include punitive damages. The defendant, who is financially stable, has appealed only the P3,000,000 punitive damages. The entity was awarded P5,000,000 in an unrelated suit it filed, which is being appealed by the defendant. Counsel is unable to estimate the outoome of the appeal. In the 2020 income statement, what amount of pretax gain should be reported? A. 1,500,000 B. 4,500,000 C. 5,000,000 D. 3,000,000 28) During January 2020, Queenie Company won a litigation award for P1,500,000 that was tripled to P4,500,000 to include punitive damages. The defendant, who is financially stable, has appealed only the P3,000,000 punitive damages. The entity was awarded P5,000,000 in an unrelated suit it filed, which is being appealed by the defendant. Counsel is unable to estimate the outoome of the appeal. In the 2020 income statement, what amount of pretax gain should be reported? A. 1,500,000 B. 4,500,000 C. 5,000,000 D. 3,000,000

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