Problem $8-7$A $($Algo$)$ Record contingencies $($LO$8-5)$

The ink$-$jet printing division of Media Printing has grown tremendously in recent years. Assume the following transactions

related to the ink$-$jet division occur during the year ended December $31,2024.$

Media Printing is being sued for $$10\mathrm{.}8$ million by Addamax. Plaintiff alleges that the defendants formed an unlawful joint

venture and drove it out of business. The case is expected to go to trial later this year. The likelihood of payment is

reasonably possible.

Media Printing is the plaintiff in a$($n$)$ $$8\mathrm{.}8$ million lawsuit filed against a competitor in the high$-$end color$-$printer market. Media

Printing expects to win the case and be awarded between $$6\mathrm{.}3$ and $$8\mathrm{.}8$ million.

Media Printing recently became aware of a design flaw in one of its ink$-$jet printers. A product recall appears probable. Such

an action would likely cost the company between $$480,000$ and $$880,000.$