below: > In the first case, ECO Inc. prevailed based on the decision of the Supreme Court which ordered the defendant to pay ECO Inc. P2,000,000. > In the second case, the legal counsel determined that it is probable that ECO will prevail in the case with a reliable estimate of damages of P1,000,000. > In the third case, the legal counsel determined that it is reasonably possible that ECO will prevail in the case with a reliable estimate of damages of P3,000,000. > In the fourth case, the legal counsel determined that it is remote that ECO will prevail in the
below: > In the first case, ECO Inc. prevailed based on the decision of the Supreme Court which ordered the defendant to pay ECO Inc. P2,000,000. > In the second case, the legal counsel determined that it is probable that ECO will prevail in the case with a reliable estimate of damages of P1,000,000. > In the third case, the legal counsel determined that it is reasonably possible that ECO will prevail in the case with a reliable estimate of damages of P3,000,000. > In the fourth case, the legal counsel determined that it is remote that ECO will prevail in the
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 6PA: Machine Corp. has several pending lawsuits against its company. Review each situation and (1)...
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Question
Provision, Contingent Assets,
Required: Determing the ff for the year ended Dec. 31, 2014
1. Accrued asset on Dec. 31, 2014
2. Disclosed Contingent Asset on Dec. 31, 2014
Transcribed Image Text:Problem 2. On December 31, 2014, ECO Inc. was a plaintiff in four independent cases provided
below:
> In the first case, ECO Inc. prevailed based on the decision of the Supreme Court which
ordered the defendant to pay ECO Inc. P2,000,000.
> In the second case, the legal counsel determined that it is probable that ECO will prevail in the
case with a reliable estimate of damages of P1,000,000.
> In the third case, the legal counsel determined that it is reasonably possible that ECO will
prevail in the case with a reliable estimate of damages of P3,000,000.
> In the fourth case, the legal counsel determined that it is remote that ECO will prevail in the
case with a reliable estimate of damages of P4,000,000.
Required: Determine the following for the year ended December 31, 2014:
_1. Accrued Asset on December 31, 2014
2. Disclosed Contingent Asset on December 31, 2014
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