current liabilities
A Corporation had the following liabilities at December 31, 1996:
|
Accounts payable |
P 110,000 |
|
Uncollateralized notes, 8%, due 7/1/97 |
800,000 |
|
Accrued expenses |
70,000 |
|
|
900,000 |
|
|
50,000 |
|
Senior bonds, 7% due 3/3/1/97 |
2,000,000 |
The contingent liability is an accrual for possible losses on a P2,000,000 lawsuit filed against A. A’s legal counsel expects the suit to be settled in 1998, and has estimated that A will be liable for damages in the range of P900,000 to P1,500,000. The deferred income tax liability is note related to an asset for financial reporting and is expected to reverse in 1998. What amount should A report in its December 31, 1996
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