Beautiful Company is involved in litigation regarding a faulty product sold in a prior year during 2021. The company has
Beautiful Company is involved in litigation regarding a faulty product sold in a prior year during 2021. The company has
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 11RE: After years of experience, Dilcort Company reasonably estimated that a loss from a pending lawsuit...
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Beautiful Company is involved in litigation regarding a faulty product sold in a prior year during 2021. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be P500,000.
How much is the Provision to be reported at December 31, 2021?
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