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- Eastern Manufacturing Is Involved with several situations that possibly involve contingencles. Each is described below. Eastern's fiscal year ends December 31, and the 2024 financial statements are issued on March 15, 2025. a. Eastern is involved in a lawsult resulting from a dispute with a supplier. On February 3, 2025, judgment was rendered against Eastern in the amount of $108 million plus interest, a total of $123 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. b. In November 2023, the State of Nevada filed sult against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2025, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $141 million will be required to cover the cost of violations. Eastern belleves that…Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern's fiscal year ends December 31, and the 2024 financial statements are issued on March 15, 2025. a. Eastern is involved in a lawsuit resulting from a dispute with a supplier. On February 3, 2025, judgment was rendered against Eastern in the amount of $114 million plus interest, a total of $129 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. b. In November 2023, the State of Nevada filed suit against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2025, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $147 million will be required to cover the cost of violations. Eastern believes that…Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern's fiscal year ends December 31, and the 2024 financial statements are issued on March 15, 2025, a. Eastern is involved in a lawsuit resulting from a dispute with a supplier. On February 3, 2025, judgment was rendered against Eastern in the amount of $118 million plus interest, a total of $133 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. b. In November 2023, the State of Nevada filed suit against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2025, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $151 million will be required to cover the cost of violations. Eastern believes that…
- On November 5, 2020, a Dunn Company truck was in an accident with an auto driven by Bell. The entity received notice on January 12, 2021 of a lawsuit for P700,000 damages for personal injuries suffered by Bell. The entity's counsel believed it is probable that Bell will be awarded an estimated amount in the range between P200,000 and P500,000. The possible outcomes are equally likely. The accounting year ends on December 31 and the 2020 financial statements were issued on March 31, 2021. What amount of provision should be accrued on December 31, 2020?Eastern Manufacturing is involved with several situations that possible involve contingencies. Each is described below. Eastern’s fiscal year ends December 31, and the 2021 financial statements are issued on March 15, 2022. Eastern is involved in a lawsuit resulting from a dispute with a supplier. On February 3, 2022, judgment was rendered against Eastern in the amount of $124 million plus interest, a total of $139 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. In November 2020, the State of Nevada filed suit against Easter, seeking civil penalties and injunctive relief for violations of upon discussions with legal counsel, the Company feels it is probable that $157 million will be required to cover the cost of violations. Eastern believes that the ultimate settlement of this claim will not have a material adverse effect on the company. Eastern is the plaintiff in a $217…Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern's fiscal year ends December 31, and the 2021 financial statements are issued on March 15, 2022 a Eastern is involved in a lawsuit resulting from a dispute with a supplier. On February 3, 2022, judgment was rendered against Eastern in the amount of $111 million plus interest, a total of $126 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. b. In November 2020, the State of Nevada filed suit against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2022, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $144 million will be required to cover the cost of violations. Eastern believes that…
- On January 1, 2021, a Dune Corporation truck was in an accident with an auto driven by R. Bell. Dune received notice on January 12, 2021, of a lawsuit for $700,000 in damages for personal injuries suffered by Bell. Dune Corporation’s legal counsel believes it is probable that Bell will be awarded an estimated amount in the range between $200,000 and $500,000, Dune’s accounting year ends on December 31, and the 2020 financial statements were issued on March 31, 2021. What amount of provision should Dune accrue on December 31, 2020?Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern's fiscal year ends December 31, and the 2021 financial statements are issued on March 15, 2022. a. Eastern is involved in a lawsuit resulting from a dispute with a supplier On February 3, 2022, judgment was rendered against Eastern in the amount of $111 million plus interest, a total of $126 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. b. In November 2020, the State of Nevada filed suit against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2022, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $144 million will be required to cover the cost of violations. Eastern believes that…Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern’s fiscal year ends December 31, and the 2021 financial statements are issued on March 15, 2022. Eastern is involved in a lawsuit resulting from a dispute with a supplier. On February 3, 2022, judgment was rendered against Eastern in the amount of $117 million plus interest, a total of $132 million. Eastern plans to appeal the judgment and is unable to predict its outcome though it is not expected to have a material adverse effect on the company. In November 2020, the State of Nevada filed suit against Eastern, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2022, Eastern reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is probable that $150 million will be required to cover the cost of violations. Eastern believes that the…
- Bourne Company provided the following selected transactions related to contingencies. The fiscal year on December 31, 2021 and financial statements are issued on March 31, 2022. Bourne is involved in a lawsuit resulting from a with a customer over a 2021 transaction. On Decembo 31, 2021, attorneys advised that it was probable that Bourne would lose P3,000,000 in an unfavorable outcome dispute * On February 15, 2022, judgment was rendered against Bourne in the amount f P4,000,000 plus interest P500,000. Bourne did not plan to appeal the judgment. Since August 2021, Bourne had been involved in labor dispute. Negotiations between the entity and the union have not produced a settlement. Since January 2021, strikes have been ongoing at these facilities. It is virtually certain that material costs will be incurred but the amount of resultant costs cannot be adequately predicted. Bourne is the defendant in a lawsuit filed in January 2022 in which the plaintiff seeks P5,000,000 as an…Bourne Company provided the following selected transactions related to contingencies. The fiscal year ends on December 31, 2020 and financial statements are issued on March 31, 2021. Bourne is involved in a lawsuit resulting from a dispute with a customer over a 2020 transaction. On December 31, 2020, attorneys advised that it was probable that Bourne would lose P3,000,000 in an unfavorable outcome. On February 15, 2021, judgment was rendered against Bourne in the amount f P4,000,000 plus interest P500,000. Bourne does not plan to appeal the judgment. Since August 2020, Bourne has been involved in labor dispute. Negotiations between the entity and the union have not produced a settlement. Since January 2020. strikes have been ongoing at these facilities. It is virtually certain that material costs will be incurred but the amount of resultant costs cannot be adequately predicted. Bourne is the defendant in a lawsuit filed in January 2021 in which the plaintiff seeks P5,000,000 as an…The following selected circumstances relate to pending lawsuits for Erismus, Inc. Erismus’s fiscal year ends onDecember 31. Financial statements are issued in March 2019. Erismus prepares its financial statements accordingto U.S. GAAP.Required:Indicate the amount of asset or liability that Erismus would record, and explain your answer.1. Erismus is defending against a lawsuit. Erismus’s management believes the company has a slightly worse than50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000.2. Erismus is defending against a lawsuit. Erismus’s management believes it is probable that the company willlose in court. If it loses, management believes that damages could fall anywhere in the range of $2,000,000 to$4,000,000, with any damage in that range equally likely.3. Erismus is defending against a lawsuit. Erismus’s management believes it is probable that the company willlose in court. If it loses, management believes that damages will…