In 20x1, JUBILEE REJOICING Co. recognized a provision for a probable loss on a pending lawsuit amounting to P2,000,000. In 20x2, the lawsuit remains unsettled and JUBILEE determined that the provision on the pending law suit must be increased by 9800,000. In 20x3, JUBILEE won the lawsuit. Nothing was paid on the settlement. The effect of the settlement on the 20x3 profit is: increase (decrease)

In 20x1, JUBILEE REJOICING Co. recognized a provision for a probable loss on a pending lawsuit amounting to P2,000,000. In 20x2, the lawsuit remains unsettled and JUBILEE determined that the provision on the pending law suit must be increased by 9800,000. In 20x3, JUBILEE won the lawsuit. Nothing was paid on the settlement. The effect of the settlement on the 20x3 profit is: increase (decrease)

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 4P

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