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- A fire occurred in the City of Manila and coincided with the looting of stock of plywood of a lumber company. The lumber company, however, failed to record such loss in its books of accounts. Was the loss deductible? Briefly explain.Superb Corporation is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Superb’s lawyer states that it is probable that Superb will lose the suit and be found liable for a judgment costing Superb anywhere from $1,200,000 to $6,000,000. However, the lawyer states that the most probable cost is $3,600,000. As a result of the above facts, Superb should accrue Select one: a loss contingency of $3,600,000 and disclose an additional contingency of up to $2,400,000. a loss contingency of $3,600,000 but not disclose any additional contingency. a loss contingency of $1,200,000 and disclose an additional contingency of up to $4,800,000. no loss contingency but disclose a contingency of $1,200,000 to $6,000,000.Kerr Steamship Company sent a telegram at a cost of $26.78 to the Philippines through the Radio Corporation of America. The telegram, which contained instructions in unintelligible code for loading cargo on one of Kerr’s ships, was mislaid and never delivered. Consequently, the ship was improperly loaded and the cargo was lost. Kerr sued the Radio Corporation for $6,675.29 in profits lost on the cargo because of the Radio Corporation’s failure to deliver the telegram. Should Kerr be allowed to recover damages from Radio? Explain.
- Swifty Corporation is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Swifty's lawyer states that it is probable that Swifty will lose the suit and be found liable for a judgment costing Swifty anywhere from $ 1830000 to $ 8960000. However, the lawyer states that the most probable cost is $ 5410000. As a result of the above facts, Swifty should accrue a loss contingency of $ 1830000 and disclose an additional contingency of up to $ 7130000. a loss contingency of $ 5410000 and disclose an additional contingency of up to $ 3550000. no loss contingency but disclose a contingency of $ 1830000 to $ 8960000. a loss contingency of $ 5410000 but not disclose any additional contingency.Bu Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Bu's lawyer states that it is probable that Bu will lose the suit and be found liable for a judgment costing Bu anywhere from P1,600,000 to P8,000,000. However, the lawyer states that the most probable cost is P 4,800,000. As a result of the above facts, Bu should accrue: *a. a loss contingency of P 4,800,000 and disclose an additional contingency of up to P 3,200,000b. a loss contingency of P 1,600,000 and disclose an additional contingency of up to P 6,400,000c. a loss contingency of P 4,800,000 but not disclose any additional contingencyd. no loss contingency but disclose a contingency of P 1,600,000 to P 8,000,000A fire occurred in the City of Pasay and coincided with the looting of stock of plywood of a lumber company. The lumber company, however, failed to record such loss in its books of accounts. Was the loss deductible? Briefly explain.
- Wooten Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Wooten's lawyer states that it is probable that Wooten will lose the suit and be found liable for a judgment costing Wooten anywhere from $1,800,000 to $9,000,000. However, the lawyer states that the most probable cost is $5,400,000. As a result of the above facts, Wooten should accrue A) a loss contingency of $1,800,000 and disclose an additional contingency of up to $7,200,000. B) a loss contingency of $5,400,000 and disclose an additional contingency of up to $3,600,000. C) a loss contingency of $5,400,000 but not disclose any additional contingency. D) no loss contingency but disclose a contingency of $1,800,000 to $9,000,000.An accident solely attributable to the criminal negligence of the driver of Reckless Bus Company resulted in the death of Ricardo's wife, physical injury to Ricardo that prevented him from working for a month and the total wreck of his brand new car which he bought for P400,000. In the action for damages filed by Ricardo against the Bus Company, the Court awarded the following: For Ricardo's injury consisting mainly in the loss of his right arm P30,000 For the loss of one month salary 25,000 For the death of his wife 25,000 For moral damages on account of such loss 100,000 For the loss of his car the value of which doubled because of inflation 800,000 1. How much was the taxable income of Ricardo?"The negligence of Aivee, driver of a certain bus company, resulted in the death of JP's wife, physical injuries to JP that prevented him from working for a month, and the total wreck of JP's brand new car which he had bought for P400.000. In the action for damages filed by JP against the bus company, the court awarded the following: • P30,000 for JP's injuries consisting mainly in the loss of his right hand; • P45,000 for JP's loss of one month salary: • P25,000 for the death of his wife: • P100,000 moral damages on account of the death of JP's wife; and • P800,000 for the loss of JP's car. How much is excluded from gross income? a Zero b. P155,000 c. P555,000 d. P955,000
- In which of these situations might moral hazard arise?a) Insurance companies fail to calculate the risks of accident correctly.b) A company receives an exemption from pollution control legislation.c) A sports team accepts bribes which affect their performance in a game.d) A group of households makes a collective purchase of flood insuranceThompson’s house was destroyed by fire and claims were filed with the insurance company. The insurance company (insurer) hired Cannon to investigate the fire as it was suspicious about the cause. Subsequently, the insurer denied the claims based on Cannon’s report. Thompson sued the insurer and Cannon. Thompson claimed to be a third party beneficiary of the Cannon-insurer contract. Is Thompson correct? If not, what type of beneficiary is he and why? Cartage Inc. agrees to pick up two truckloads of housewares for Discount Corporation and store the contents to be delivered later. After Cartage unloads the goods at its storage facility, some of them disappear from the loading dock. A court will presume that a. the goods were stolen through no fault of Cartage. b. the warehouse is in a high-crime area. c. Cartage was negligent. d. Discount was negligent