On November 1, 2012, 69 passengers on CANYON AIRLINES Flight No. 143 were injured upon landing when the plane skidded off the runway. Personal injury suits for damages totaling P10,000,000 were filed on January 12, 2013, against the airline by 21 injured passengers. The airline carries no insurance. Legal counsel has studied each suit and advised Canon that it can reasonably expect to pay 70% of the damages claimed. The financial statements for the year ended December 31, 2012, were authorized for issue on February 12, 2013. During the past decade, the company has experienced at least one accident per year and incurred average damages of P4,100,000. Loss for accident?
On November 1, 2012, 69 passengers on CANYON AIRLINES Flight No. 143 were injured upon landing when the plane skidded off the runway. Personal injury suits for damages totaling P10,000,000 were filed on January 12, 2013, against the airline by 21 injured passengers. The airline carries no insurance. Legal counsel has studied each suit and advised Canon that it can reasonably expect to pay 70% of the damages claimed. The financial statements for the year ended December 31, 2012, were authorized for issue on February 12, 2013. During the past decade, the company has experienced at least one accident per year and incurred average damages of P4,100,000. Loss for accident?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On November 1, 2012, 69 passengers on CANYON AIRLINES Flight No. 143 were injured upon landing when the plane skidded off the runway. Personal injury suits for damages totaling P10,000,000 were filed on January 12, 2013, against the airline by 21 injured passengers. The airline carries no insurance. Legal counsel has studied each suit and advised Canon that it can reasonably expect to pay 70% of the damages claimed. The financial statements for the year ended December 31, 2012, were authorized for issue on February 12, 2013. During the past decade, the company has experienced at least one accident per year and incurred average damages of P4,100,000.
Loss for accident?
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