Reference no: EM131115655
Contingencies Presented below are three independent situations. Answer the question at the end of each situation.
1. During 2010, Maverick Inc. became involved in a tax dispute with the IRS. Maverick's attorneys have indicated that they believe it is probable that Maverick will lose this dispute. They also believe that Maverick will have to pay the IRS between $800,000 and $1,400,000. After the 2010 financial statements were issued, the case was settled with the IRS for $1,200,000. What amount, if any, should be reported as a liability for this contingency as of December 31, 2010?
2. On October 1, 2010, Holmgren Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Holmgren's management along with its counsel has concluded that it is probable that Holmgren will be responsible for damages, and a reasonable estimate of these damages is $6,000,000. Holmgren's insurance policy of $9,000,000 has a deductible clause of $500,000. How should Holmgren Chemical report this information in its financial statements at December 31, 2010?
3. Shin-obi Inc. had a manufacturing plant in Darfur, which was destroyed in the civil war. It is not certain who will compensate Shin-obi for this destruction, but Shin-obi has been assured by governmental officials that it will receive a definite amount for this plant. The amount of the compensation will be less than the fair value of the plant, but more than its book value. How should the contingency be reported in the financial statements of Shin-obi Inc.?
|
What is the minimum number of lines of communication
: A project manager is planning an upcoming project. Her project team will consist of 11 team members, not including the project manager. What is the minimum number of lines of communication her plan should take into account? Explain what your answer..
|
|
Explain the current situation of the organization
: Your paper must be eight to ten pages in length (excluding the title and reference pages) and formatted according to APA style guidelines as outlined in the Ashford Writing Center. In addition, you must use at least three scholarly sources, in add..
|
|
Switching cost types-procedural-financial and relational
: Then, for each of the switching cost types (procedural, financial, and relational), identify one product/service that has high switching costs and another that has low switching costs. Explain why.
|
|
Observational study on chief executives
: A market research firm has carried out an observational study on the chief executives fromall ofthe law firms in the country. The numerical measures obtained from the analysis of the data are referred to as
|
|
Answer the question at the end of each situation
: During 2010, Maverick Inc. became involved in a tax dispute with the IRS. Maverick's attorneys have indicated that they believe it is probable that Maverick will lose this dispute.
|
|
Find the average rate of change of the chains profit
: Find the average rate of change of the chains profit in dollars per year - Find the value of y so that the line passing through the two points
|
|
What is nash manufacturing cycle efficiency
: Nash Corporation manufactures and sells custom snowmobiles. What is Nash's manufacturing cycle efficiency (MCE) for its snowmobiles
|
|
Analyze the relevance of current organizational structure
: Determine whether the organization embodies the principles and values of conscious culture and management and its relevance to improving organizational function.
|
|
Large population of kiwis from the north island
: A random sample of 25 birds has been selected from a large population of kiwis from the north island. The mean height of the sample is 50 cm with a standard deviation of 8 cm. set up a 95% confidence interval estimate for the mean height of the bi..
|