Blossom Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the residents to be exposed to highly toxic chemicals from its plant. Blossom's lawyer states that it is probable that Blossom will lose the suit and be found liable for a judgment costing Blossom anywhere from $1840000 to $9000000. However, the lawyer states that the most probable cost is $5400000. As a result of the above facts, Blossom should accrue a loss contingency of $1840000 and disclose an additional contingency of up to $7160000. O a loss contingency of $5400000 and disclose an additional contingency of up to $3600000. O a loss contingency of $5400000 but not disclose any additional contingency. O no loss contingency but disclose a contingency of $1840000 to $9000000.

Blossom Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the residents to be exposed to highly toxic chemicals from its plant. Blossom's lawyer states that it is probable that Blossom will lose the suit and be found liable for a judgment costing Blossom anywhere from $1840000 to $9000000. However, the lawyer states that the most probable cost is $5400000. As a result of the above facts, Blossom should accrue a loss contingency of $1840000 and disclose an additional contingency of up to $7160000. O a loss contingency of $5400000 and disclose an additional contingency of up to $3600000. O a loss contingency of $5400000 but not disclose any additional contingency. O no loss contingency but disclose a contingency of $1840000 to $9000000.

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter11: Environmental Regulation And Sustainability

Section: Chapter Questions

Problem 3QAP

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Swifty Corporation is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Swifty's lawyer states that it is probable that Swifty will lose the suit and be found liable for a judgment costing Swifty anywhere from $ 1830000 to $ 8960000. However, the lawyer states that the most probable cost is $ 5410000. As a result of the above facts, Swifty should accrue a loss contingency of $ 1830000 and disclose an additional contingency of up to $ 7130000. a loss contingency of $ 5410000 and disclose an additional contingency of up to $ 3550000. no loss contingency but disclose a contingency of $ 1830000 to $ 8960000. a loss contingency of $ 5410000 but not disclose any additional contingency.
Superb Corporation is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Superb’s lawyer states that it is probable that Superb will lose the suit and be found liable for a judgment costing Superb anywhere from $1,200,000 to $6,000,000. However, the lawyer states that the most probable cost is $3,600,000. As a result of the above facts, Superb should accrue Select one: a loss contingency of $3,600,000 and disclose an additional contingency of up to $2,400,000. a loss contingency of $3,600,000 but not disclose any additional contingency. a loss contingency of $1,200,000 and disclose an additional contingency of up to $4,800,000. no loss contingency but disclose a contingency of $1,200,000 to $6,000,000.
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