DIDAL Company owns a ranch which produces the livestock which it uses in its meat processing operations. As at December 31, 2020, the liabilities of Didal Company are: Unsecured notes, 8% due 6/1/21, P10,000,000; Deferred tax liability, P2,000,000; Accounts payable, P5,000,000; Contingent liability, P3,000,000; Senior bonds, 7% due 3/31/21, P30,000,000; Accrued expenses; P1,000,000. The contingent liability represents the accrual for possible and measurable loss on a legal suit filed by Mall Company against Didal Company for damages in the amount of P6,000,000. The litigation lawyer of Didal Company expects that the litigation shall be settled in 2021, and the estimate of damages that Didal will be liable is in the range of P3,000,000 to P6,000,000. The deferred tax liability is not an asset for financial reporting and is expected to reverse in 2022. In the December 31, 2020 balance sheet, the amount that should be reported by Didal Company for current liabilities should be Group of Answers 16,000,000 48,000,000 49,000,000 46,000,000
DIDAL Company owns a ranch which produces the livestock which it uses in its meat processing operations. As at December 31, 2020, the liabilities of Didal Company are: Unsecured notes, 8% due 6/1/21, P10,000,000;
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