OIgnore the lawsuit. No impact on the financial statements or Disclosurein the NotesRecord the $1,000,000 as a Loss on the 2019 Income StatementPresent the $1,00,000 as a Loss on the Income Statement and aLiability on the Balance Sheet; and required Disclosure in the NotesPresent the $1,00,000 as a Loss on the Income Statement and aLiability on the Balance SheetSave & ExitNo Loss on the Income Statement or Liability on the Balance Sheet, butrequired Disclosure in the Notes West Chester University is being sued for $1,000,000 by Mr. Durstin. Mr. Durstin is claiming he wasseverely injured on June 21, 2019 when he slipped on the snow and ice that had not been properlyshoveled off of the pavement in front of Anderson Hall. As of June 30, 2019, the last day of WestChester University's fiscal year, Mr. Durstin's lawsuit had not yet gone to trial. Which of the following isCORRECT concerning the impact of the contingent liability from Mr. Durstin's lawsuit on West ChesterUniversity's June, 30, 2019 financial statements?Multiple ChoiceIgnore the lawsuit. No impact on the financial statements or Disclosurein the NotesRecord the $1,000,000 as a Loss on the 2019 Income StatementPresent the $1,00,000 as a Loss on the Income Statement and aLiability on the Balance Sheet; and required Disclosure in the Notes

Contingent liability refers to the liability which decrease the assets as well as net profitability…

Answered: West Chester University is being sued…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Finley Roofing is involved with several situations that possibly involve contingencies. Each is described below. Finley's fiscal year ends December 31, and the 2023 financial statements are issued on March 20, 2024. 1. Finley is involved in a lawsuit resulting from a dispute with a customer. On January 25, 2023, judgment was rendered against Finley in the amount of $10 million plus interest, a total of $11 million. Finley plans to appeal the judgment, but does not expect the appeal to succeed. 2. At March 20, 2023, the EPA is in the process of investigating possible environmental violations at one of Finley's work sites, but has not proposed a deficiency assessment. Management feels an assessment is probable, and if an assessment is made an unfavorable settlement between $15 million to $23 million is probable. 3. Finley is the plaintiff in a $41 million lawsuit filed against AA Asphalt for damages due to lost profits from rejected contracts and for unpaid receivables. The case is in…
It is now December 31, 2020 (t = 0), and a jury just found in favor of a woman who sued the city for injuries sustained in a January 2019 accident. She requested recovery of lost wages plus $300,000 for pain and suffering plus $60,000 for legal expenses. Her doctor testified that she has been unable to work since the accident and that she will not be able to work in the future. She is now 62, and the jury decided that she would have worked for another 3 years. She was scheduled have earned $32,000 in 2019. (To simplify this problem, assume that the entire annual salary amount would have been received on December 31, 2019.) Her employer testified that she probably would have received raises of 3% per year. The actual payment for the Jury award will be made on December 31, 2021. The judge stipulated that all dollar amounts are to be adjusted to a present value basis on December 31, 2021, using a 5% annual interest rate and using compound, not simple, Interest. Furthermore, he stipulated…
Matthew's retail store was condemned by the state. The retail store had a basis of $452000 and a FMV of $482500. The state awarded Matthew $605000, which he used to purchase a qualified replacement property for $527100 within the replacement time period. Calculate the basis in there placement property for the involuntary conversion. A)$452000 B) $527100 C)$605000 D) $482500
During 2020, Brandi loans her brother Keefer $40,000, which he intends to use to establish a small business. Because Keefer has no other assets and needs cash to establish the business, the agreement provides that Keefer will repay the debt if (and when) sufficient funds are generated from the business. Brandi and Keefer do not establish an interest rate. The business is unsuccessful, and Keefer is forced to file for bankruptcy in 2021. By the end of 2021, it is estimated that the creditors will receive only 50% of the amount owed. In 2022 the bankruptcy proceedings are closed, and the creditors receive 25% of the amount due on the debt. Requirement What is Brandi's bad debt deduction for 2021? For 2022? (Complete all input fields. Enter a "0" if no bad debt deduction can be taken.) Brandi's bad debt deduction for 2021 will be Brandi's bad debt deduction for 2022 will be
Craig commits fraud on his tax return. It is found that he was $40,000 deficient in his tax because of the fraud. What would his penalty be? Please show all calculations to demonstrate how you arrived at your answer. In your response, please make sure to take all of the facts above into consideration. You can refer back to the text, lecture videos, and the IRS website.
Sunny is 27 and is completing her bachelor's degree at an accredited college during 2019. She paid $7,500 in tuition during 2019 along with $300 in activity fees to be able to complete the needed classes on a full time basis. Sunny's AGI for 2019 will be $46,000. She will not be eligible to use any other education credits during 2019. What deduction for AGI will Sunny be able to claim in 2019 for her school expenses.
Oswald, while walking down the street, is hit by a reckless driver. Oswald sues the driver and recovers the following damages: $20,000 to reimburse Johnny for medical expenses previously incurred (but not previously deducted), $10,000 for pain and suffering, $5,000 for emotional distress stemming from the accident, and $2,500 in punitive damages How much of Oswald's recovery is included in gross income?
Yukari steals $100,000 from her employer through a series of clever transactions during calendar year 2019. Hoping that she will not be discovered, she does not report this amount on her 2019 income tax return when she files it, although she does report her annual salary of $250,000. Should Yukari have reported the $100,000 in income, she would have owed an additional $33,000 in taxes. Two years later, the scheme is uncovered by the shrewd analysis of a new employee. What is the penalty for the omission of the $100,000 of income? $24,750 $30,000 $75,000 $16,500 I DON'T KNOW YET
None
On Nov. 5, 2016, a Fudge Corp. truck was in an accident with an auto driven by Paul. Fudge received notice on January 15, 2017 of a lawsuit for P 700,000 damages for personal injuries suffered by Paul . The entity's counsel believed it is probable that Paul will be awarded an estimated amount in the range between P 200,000 and P 450,000 and no amount is a better estimate of potential liability than any other amount because each point in the range is as likely as any other. The 2016 financial statements were issued on March 1, 2017. What amount of loss should be accrued on Dec. 31, 2016?
The City of Greenville condemned 300 acres of Kayla's farmland. Kayla's land was worth $250,000 and her basis was $62,500. In payment to Kayla, the city gave Kayla 500 acres of similar land. An appraisal indicated that the land Kayla received was worth $265,000. What is Kayla's recognized gain or loss on the involuntary conversion and what is her basis in the land received?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS