In May 2002 Caso Co. filed suit against Wayne, Inc. seeking $1,900,000 damages for patent infringement. A court verdict in November 2006 awarded Caso $1,500,000 in damages, but Wayne’s appeal is not expected to be decided before 2008. Caso’s counsel believes it is probable that Caso will be successful against Wayne for an estimated amount in the range between $800,000 and $1,100,000, with $1,000,000 considered the most likely amount. What amount should Caso record as income from the lawsuit in the year ended December 31, 2006?
- $ 800,000