During 2019 Lian Company became involved in a tax dispute with the BIR. At December 31, 2019, Lian’s tax advisor believed that an unfavorable outcome was probable and the best estimate of additional tax was 750,000, but could be as much as 975,000. After the 2019 financial statements were issued, Leal received and accepted a BIR settlement offer of 825,000. What amount of accrued liability would Leal have reported in its December 31, 2019 statement of financial position?
During 2019 Lian Company became involved in a tax dispute with the BIR. At December 31, 2019, Lian’s tax advisor believed that an unfavorable outcome was probable and the best estimate of additional tax was 750,000, but could be as much as 975,000. After the 2019 financial statements were issued, Leal received and accepted a BIR settlement offer of 825,000. What amount of accrued liability would Leal have reported in its December 31, 2019 statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 2019 Lian Company became involved in a tax dispute with the BIR. At December 31, 2019, Lian’s tax advisor believed that an unfavorable outcome was probable and the best estimate of additional tax was 750,000, but could be as much as 975,000. After the 2019 financial statements were issued, Leal received and accepted a BIR settlement offer of 825,000. What amount of accrued liability would Leal have reported in its December 31, 2019
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