After the end of the 2022 fiscal year but before financial statements were issued, Palladin Company learned that an arbitrator had made a $15 million judgment in a litigation case against it. The claim had been made in 2021 for alleged defects of products sold in 2020. Prior to learning of the judgment, Palladin had not accrued any litigation loss, and does not plan to appeal. For the 2022 fiscal year, Palladin should:
Disclose the potential for a judgment in the notes, but not indicate the amount, since the judgment was made after fiscal year end.
Disclose in the notes that a $15 million judgment was made after fiscal year end.
Accrue a $15 million liability and explain it in a note to the financial statements.
Do nothing relative to the contingency.
Answers: 2
Another question on Business
Business, 21.06.2019 22:50
Which of the following statements is true? a job costing system will have a separate work in process account for each of the major processes. a process costing system will have a single work in process account. a process costing system will have a separate raw materials account for each of the major processes. a process costing system will have a separate work in process account for each of the major processes.
Answers: 3
Business, 22.06.2019 09:50
phillips, inc. had the following financial data for the year ended december 31, 2019. cash $ 41,000 cash equivalents 75,000 long term investments 59,000 total current liabilities 149,000 what is the cash ratio as of december 31, 2019, for phillips, inc.? (round your answer to two decimal places.)
Answers: 3
Business, 22.06.2019 16:20
The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. the production order quantity for this problem is approximately:
Answers: 1
Business, 22.06.2019 18:00
Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less
Answers: 1
You know the right answer?
After the end of the 2022 fiscal year but before financial statements were issued, Palladin Company...
Questions
Medicine, 19.10.2019 01:00
Chemistry, 19.10.2019 01:00
Advanced Placement (AP), 19.10.2019 01:00
Biology, 19.10.2019 01:00
History, 19.10.2019 01:00
Social Studies, 19.10.2019 01:00
Biology, 19.10.2019 01:00
Mathematics, 19.10.2019 01:00
Mathematics, 19.10.2019 01:00
