Please answer both. This is part A and B Decorative Concrete produces a concrete overlay for residentlal and commerclal concrete flooring. Customers have complained thatone of the products results In excessIve cracking. The likellhood the company wll Incur a loss on this product Is probable and theamount of the loss Is estimated to be somewhere between $1.3 and $5 million.1. Should this contingent llabllity be reported, disclosed In a note only, or both?O To be reportedO To be disclosedO Both2. What loss, If any, should Decorative Concrete report In Its Income statement? (Enter your answers In dollars, not In mlllons.)Loss to be reporled3. What llability, If any, should Decorative Concrete report In Its balance sheet? (Enter your answers In dollars, not In milllons.)Liability to be reported4. What entry, If any, should be recorded? (If no entry Is requlred for a particular transaction/event, select "No Journal EntryRequlred" In the first account fleld. Enter your answers In dollars, not In mlllons.)View transaction listJournal entry worksheetRecord the contingent liability if needed.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit Assets acqulred In a lump-sum purchase are valued based on:Multiple ChoiceTheir cost plus the difference between their cost and fair values.The present value of their future cash flows.Their assessed valuation.Their relative fair values.

Contingent liabilities may accrue but contingent assets do not accrue. The liability incurred at…

Answered: answer both. This is part A and B

Business

Accounting

answer both. This is part A and B

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 38P

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