SENTIENT AWARE Co. is engaged in logistics services. During the year, a warehouse was destroyed by fire. It was estimated that SENTIENT will probably pay around 200M in damages caused to the goods owned by customers that were contained in the destroyed warehouse. The contents of the warehouse are insured for P8OM. SENTIENTS claim for the insurance has been approved for payment by the insurance company. How much is the provision to be recognized?

SENTIENT AWARE Co. is engaged in logistics services. During the year, a warehouse was destroyed by fire. It was estimated that SENTIENT will probably pay around 200M in damages caused to the goods owned by customers that were contained in the destroyed warehouse. The contents of the warehouse are insured for P8OM. SENTIENTS claim for the insurance has been approved for payment by the insurance company. How much is the provision to be recognized?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 59P

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