Smith Taylor Co. was sued by a competitor for P5,000,000 for infringement of patent. They carried a provision of P3,000,000 in relation to this court case. On March 15, 2022 the Supreme court decided in favor of the other party and ordered the defendant to pay P3,500,000.The financial statements were prepared by the management on February 15, 2022 and approved by the board of directors on March 31, 2022.What amount should be recognized as accrued liability for the infringement of patent case? a. 5000000 b. 3500000 c. 3000000 d. 1500000
Smith Taylor Co. was sued by a competitor for P5,000,000 for infringement of patent. They carried a provision of P3,000,000 in relation to this court case. On March 15, 2022 the Supreme court decided in favor of the other party and ordered the defendant to pay P3,500,000.The financial statements were prepared by the management on February 15, 2022 and approved by the board of directors on March 31, 2022.What amount should be recognized as accrued liability for the infringement of patent case? a. 5000000 b. 3500000 c. 3000000 d. 1500000
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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Smith Taylor Co. was sued by a competitor for P5,000,000 for infringement of patent. They carried a provision of P3,000,000 in relation to this court case. On March 15, 2022 the Supreme court decided in favor of the other party and ordered the defendant to pay P3,500,000.The financial statements were prepared by the management on February 15, 2022 and approved by the board of directors on March 31, 2022.What amount should be recognized as accrued liability for the infringement of patent case?
a. 5000000
b. 3500000
c. 3000000
d. 1500000
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