A court case decided on December 2020 awarded damages against Talunan Corp. The judge has announced that the amount of damages will be set at a future date, expected to be in March 2021. Talunan Corp has received advice from its lawyers that the amount of the damages could be anything between P400,000 and P1,400,000. As of December 31, 2020, how much liability should be recognized in the balance sheet regarding this court case? P900,000 b. P1,400,000 c. P400,000 d. P0
A court case decided on December 2020 awarded damages against Talunan Corp. The judge has announced that the amount of damages will be set at a future date, expected to be in March 2021. Talunan Corp has received advice from its lawyers that the amount of the damages could be anything between P400,000 and P1,400,000. As of December 31, 2020, how much liability should be recognized in the balance sheet regarding this court case? P900,000 b. P1,400,000 c. P400,000 d. P0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A court case decided on December 2020 awarded damages against Talunan Corp. The judge has announced that the amount of damages will be set at a future date, expected to be in March 2021. Talunan Corp has received advice from its lawyers that the amount of the damages could be anything between P400,000 and P1,400,000. As of December 31, 2020, how much liability should be recognized in the balance sheet regarding this court case?
- P900,000 b. P1,400,000 c. P400,000 d. P0
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