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2. 3. As a result of uninsured accidents during the year, personal injury suits for $668,600 and $126,800 have been filed the company. It is the judgment of Flounder's legal counsel that an unfavorable outcome is unlikely in the $126,800 that an unfavorable verdict approximating $550,000 (reliably estimated) will probably result in the $668,600 case. Flounder owns a subsidiary in a foreign country that has a book value of $6,161,000 and an estimated fair value of $8,992,800. The foreign government has communicated to Flounder its intention to expropriate the assets and bus foreign investors. On the basis of settlements other firms have received from this same country, Flounder expects t receive 40% of the fair value of its properties as final settlement. Flounder's chemical product division consisting of five plants is uninsurable because of the special risk of injury to e and losses due to fire and explosion. The year 2025 is considered one of the safest (luckiest) in the division's history no loss due to injury or casualty was suffered. Having suffered an average of three casualties a year during the rest c

2. 3. As a result of uninsured accidents during the year, personal injury suits for $668,600 and $126,800 have been filed the company. It is the judgment of Flounder's legal counsel that an unfavorable outcome is unlikely in the $126,800 that an unfavorable verdict approximating $550,000 (reliably estimated) will probably result in the $668,600 case. Flounder owns a subsidiary in a foreign country that has a book value of $6,161,000 and an estimated fair value of $8,992,800. The foreign government has communicated to Flounder its intention to expropriate the assets and bus foreign investors. On the basis of settlements other firms have received from this same country, Flounder expects t receive 40% of the fair value of its properties as final settlement. Flounder's chemical product division consisting of five plants is uninsurable because of the special risk of injury to e and losses due to fire and explosion. The year 2025 is considered one of the safest (luckiest) in the division's history no loss due to injury or casualty was suffered. Having suffered an average of three casualties a year during the rest c

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. 2. 3. No. 1. (a) Prepare the journal entries that should be recorded as of December 31, 2025, to recognize each of the situations above. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) 2 As a result of uninsured accidents during the year, personal injury suits for $668,600 and $126,800 have been filed against the company. It is the judgment of Flounder's legal counsel that an unfavorable outcome is unlikely in the $126,800 case but that an unfavorable verdict approximating $550,000 (reliably estimated) will probably result in the $668,600 case. 3. Flounder owns a subsidiary in a foreign country that has a book value of $6,161,000 and an estimated fair value of $8,992,800. The foreign government has communicated to Flounder its intention to expropriate the assets and business of all foreign investors. On the basis of settlements other firms have received from this same country, Flounder expects to receive 40% of the fair value of its properties as final settlement. Flounder's chemical product division consisting of five plants is uninsurable because of the special risk of injury to employees and losses due to fire and explosion. The year 2025 is considered one of the safest (luckiest) in the division's history because no loss due to injury or casualty was suffered. Having suffered an average of three casualties a year during the rest of the past decade (ranging from $63,400 to $670,000), management is certain that next year the company will probably not be so fortunate. Date December 31, 2025 December 31, 2025 December 31, 2025 Account Titles and Explanation Debit Credit
Transcribed Image Text:1. 2. 3. No. 1. (a) Prepare the journal entries that should be recorded as of December 31, 2025, to recognize each of the situations above. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) 2 As a result of uninsured accidents during the year, personal injury suits for $668,600 and $126,800 have been filed against the company. It is the judgment of Flounder's legal counsel that an unfavorable outcome is unlikely in the $126,800 case but that an unfavorable verdict approximating $550,000 (reliably estimated) will probably result in the $668,600 case. 3. Flounder owns a subsidiary in a foreign country that has a book value of $6,161,000 and an estimated fair value of $8,992,800. The foreign government has communicated to Flounder its intention to expropriate the assets and business of all foreign investors. On the basis of settlements other firms have received from this same country, Flounder expects to receive 40% of the fair value of its properties as final settlement. Flounder's chemical product division consisting of five plants is uninsurable because of the special risk of injury to employees and losses due to fire and explosion. The year 2025 is considered one of the safest (luckiest) in the division's history because no loss due to injury or casualty was suffered. Having suffered an average of three casualties a year during the rest of the past decade (ranging from $63,400 to $670,000), management is certain that next year the company will probably not be so fortunate. Date December 31, 2025 December 31, 2025 December 31, 2025 Account Titles and Explanation Debit Credit
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