Proper accounting treatment

Reference no: EM13144689

In August, 2010 a worker was injured in the factory in an accident partially as the result of his own negligence. The worker has sued Wesley Co. for $800,000. Counsel believes it is reasonably possible that the outcome of the suit will be unfavorable and that the settlement would cost the company from $250,000 to $500,000.

A suit for breach of contract seeking damages of $2,400,000 was filed by an author against Greer Co. on October 4, 2010. Greer's legal counsel believes that an unfavorable outcome is probable. A reasonable estimate of the award to the plaintiff is between $600,000 and $1,800,000. No amount within this range is a better estimate of potential damages than any other amount.

Quinn is involved in a pending court case. Peete's lawyers believe it is probable that Quinn will be awarded damages of $1,000,000.

Instructions:

Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers.

Reference no: EM13144689

Questions Cloud

A student is presented with a sample of an unknown substance : A student is presented with a sample of an unknown substance and asked to classify the substance as organic or inorganic

What are the components of a species ecological niche : what are the components of a species ecological niche in relation to primate behavioral ecology?

Authorized stock of corporation : The authorized stock of a corporation

Describe event that call arrives within fifteen minutes : A telephone call from a certain person is received some time between 7:00 A.M. and 9:10 A.M. every day. Define a sample space for this phenomenon, and describe the event that the call arrives within 15 minutes of the hour.

Proper accounting treatment : Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers.

What is the new temperature in celcius : A balloon has a volume of 3.00 liters and a temperature of 56.0 celcius.if the volume increases to 7.00 liters, what is the new temperature in celcius?

Explain what are the molar enthalpy and total enthalpy : five grams of the specified pure solvent is placed is placed in a variable volume piston. What are the molar enthalpy and total enthalpy of the pure system when 50% and 75% have been evaporated at

Which part of dna carries the genetic information : Which part of DNA carries the genetic information, the nitrogen bases, the phosphate or the sugar?

Percentage of flashlights will have life sixty six hours : The flashlight batteries produced by Manufacturer X are known to have a mean life of 60 hours, with a standard deviation of 4 hours. At least what percentage of flashlights will have a life of 54 to 66 hours?

User Account

All Pages