During 2020, ABC Company became involved in a tax dispute with the BIR. At December 31, 2020, ABC's tax advisor believed that an unfavourable outcome was probable and a reasonable estimate of additional taxes was P5,250,000. Before the 2020 financial statements were issued, ABC received and accepted a BIR settlement of P5,500,000. What amount of accrued liability would ABC have reported on its December 31, 2020 balance sheet?

During 2020, ABC Company became involved in a tax dispute with the BIR. At December 31, 2020, ABC's tax advisor believed that an unfavourable outcome was probable and a reasonable estimate of additional taxes was P5,250,000. Before the 2020 financial statements were issued, ABC received and accepted a BIR settlement of P5,500,000. What amount of accrued liability would ABC have reported on its December 31, 2020 balance sheet?

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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