Business, 29.10.2021 14:10 heroxtree

This year, Port City was sued for injuries sustained when a citizen slipped and broke her hip on the icy City Hall steps. The City attorney estimates the City will be held liable by the courts and a judgment of $200,000 will result. Because of the nature of the case it will likely be four years before the City makes any payment related to the accident. The present value of the likely future payment is $167,000. In the government-wide financial statements, at the end of the current fiscal year, Port City should recognize a liability of: a. $200,000.00
b. $167,000.00
c. $0.00
d. $50,000.00

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This year, Port City was sued for injuries sustained when a citizen slipped and broke her hip on the...

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