The contingent liability is an accrual for possible loss on a P1,000,000 lawsuit filed against the entity. The legal counsel expects the suit to be settled in 2021 and has estimated that the entity will be liable for damages in the range of P450,000 to P750,000. The deferred tax liability is expected to reverse in 2021. What amount should be reported on December 31, 2020 for current liabilities? None of these None of these 940,000 940,000 1,490,000
An entity had the following liabilities on December 31, 2020:
Accounts Payable 55,000
Unsecured notes, 8% due 7/1/2021 400,000
Accrued expenses 35,000
Senior bonds, 7%, due 3/31/2021 1,000,000
The contingent liability is an accrual for possible loss on a P1,000,000 lawsuit filed against the entity. The legal counsel expects the suit to be settled in 2021 and has estimated that the entity will be liable for damages in the range of P450,000 to P750,000. The deferred tax liability is expected to reverse in 2021. What amount should be reported on December 31, 2020 for current liabilities?
None of these
None of these
940,000
940,000
1,490,000
1,490,000
1,515,000
1,515,000
515,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
