Use the following information for the next two (2) questions: During 2026, Raven Company became involved in a tax dispute with BIR. At December 31, 2026, Raven's tax advisor believed that an unfavorable outcome was probable and a reasonable estimate of additional taxes was P5,000,000 but could be as much as P6,500,000. After the 2026 financial statements were issued, Raven received and accepted a BIR settlement offer of P5,500,000. - What amount of accrued liability would Raven have reported in its Decembe 31, 2026 balance sheet?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Use the following information for the next two (2) questions:

During 2026, Raven Company became involved in a tax dispute with BIR. At

December 31, 2026, Raven's tax advisor believed that an unfavorable outcome

was probable and a reasonable estimate of additional taxes was P5,000,000 but

could be as much as P6,500,000. After the 2026 financial statements were

issued, Raven received and accepted a BIR settlement offer of P5,500,000.

- What amount of accrued liability would Raven have reported in its Decembe

31, 2026 balance sheet?

 

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