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Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.8 million. The fiscal year ends on December 31. Required: Should this contingent liability be reported, disclosed in a note only, or neither?
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Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers...
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