Question: Guite Co. estimates it is probable that it will receive a $10,000 gain contingency and pay a $4,000 loss contingency. After recording the appropriate journal

Guite Co. estimates it is probable that it will receive a $10,000 gain contingency and pay a $4,000 loss contingency. After recording the appropriate journal entries to recognize contingent amounts, Guite Co.'s net assets will:

A.	Increase by $10,000.

B.	Increase by $6,000.

C.	Decrease by $4,000.

D.	Not change.

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