On December 31, 2019, Home Company was a defendant in a pending lawsuit. The suit arose from the alleged defect of a product that Home sold in 2015. In the opinion of Home’s attorney, it is probable that Home will have to pay P500,000 and it is reasonably possible that Home will have to pay additional P100,000 as a result of this lawsuit. What amount needs to be disclosed only?
On December 31, 2019, Home Company was a defendant in a pending lawsuit. The suit arose from the alleged defect of a product that Home sold in 2015. In the opinion of Home’s attorney, it is probable that Home will have to pay P500,000 and it is reasonably possible that Home will have to pay additional P100,000 as a result of this lawsuit. What amount needs to be disclosed only?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2019, Home Company was a defendant in a pending lawsuit. The suit arose from the alleged defect of a product that Home sold in 2015. In the opinion of Home’s attorney, it is probable that Home will have to pay P500,000 and it is reasonably possible that Home will have to pay additional P100,000 as a result of this lawsuit.
What amount needs to be disclosed only?
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