Bu Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Bu's lawyer states that it is probable that Bu will lose the suit and be found liable for a judgment costing Bu anywhere from P1,600,000 to P8,000,000. However, the lawyer states that the most probable cost is P 4,800,000. As a result of the above facts, Bu should accrue: * a. a loss contingency of P 4,800,000 and disclose an additional contingency of up to P 3,200,000 b. a loss contingency of P 1,600,000 and disclose an additional contingency of up to P 6,400,000 c. a loss contingency of P 4,800,000 but not disclose any additional contingency d. no loss contingency but disclose a contingency of P 1,600,000 to P 8,000,000
Bu Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Bu's lawyer states that it is probable that Bu will lose the suit and be found liable for a judgment costing Bu anywhere from P1,600,000 to P8,000,000. However, the lawyer states that the most probable cost is P 4,800,000. As a result of the above facts, Bu should accrue: *
a. a loss contingency of P 4,800,000 and disclose an additional contingency of up to P 3,200,000
b. a loss contingency of P 1,600,000 and disclose an additional contingency of up to P 6,400,000
c. a loss contingency of P 4,800,000 but not disclose any additional contingency
d. no loss contingency but disclose a contingency of P 1,600,000 to P 8,000,000
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