On November 5, 2014, a Longhaul Rental truck was in an accident with an auto driven by Alana Rodriguez. Longhaul Rental received notice on January 12, 2015, of a lawsuit for $700,000 damages for personal injuries suffered by Rodriguez. Longhaul Rental's counsel believes it is probable that Rodriguez will be awarded an estimated amount in the range between $300,000 and $550,000, and that $400,000
is a better estimate of potential liability than any other amount. Longhaul's accounting year ends on December 31 . and the 2014 financial statements were issued on March 2, 2015 . What amount of loss should Longhaul accrue at December 31 . 2014?
a. $0
b. $300,000
c. $400,000
d. $550,000
C
You might also like to view...
Generally accepted methods of accounting for a change in accounting principle include
A) restating prior years' financial statements presented for comparative purposes. B) including the cumulative effect of the change in net income. C) prospective changes. D) making a prior-period adjustment.
After handling an employee outburst, the leader should ______.
A. walk away and forget about it B. call the other employees together and tell them the behavior will not be tolerated C. question their own behaviors and the environment they have created D. fire the employee immediately
Spin boils down to outright lying in order to cover up what actually happened in a situation
Indicate whether the statement is true or false
The basic AutoFilter function creates _____ based on exact match criteria.
Fill in the blank(s) with the appropriate word(s).