Question: Gore Incorporated recorded a liability in 2024 for probable litigation losses of $2 million. Ultimately, $5 million in legitimate warranty claims were filed by Gore's customers.
Multiple Choice:
- Gore has made a change in accounting principle, requiring retrospective adjustment.
- Gore needs to correct an accounting error.
- Gore is required to adjust a change in accounting estimate prospectively.
- Gore is not required to make any accounting adjustments.