Solution-What amount should be recognized as accrued

What amount should be recognized as accrued liability

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Reference no: EM132521145

Question - During 2013, Marian Company was sued by a competitor for P5,000,000 for infringement of patent. Based on the advice of the entity's legal counsel, the entity accrued the sum of P3,000,000 as a provision in its financial statements for the year ended December 31, 2013.

Subsequently, on March 15, 2014. The Supreme Court decided in favor of the party alleging infringement of the patent and ordered the defendant to pay the aggrieved party a sum of P3,500,000.

The financial statements were prepared by the entity's management of February 15, 2014 and approved by the board of directors on March 31, 2014.

Required - What amount should be recognized as accrued liability on December 31, 2013?

A. 5,000,000

B. 3,500,000

C. 3,000,000

D. 0

Reference no: EM132521145

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What amount should be recognized as accrued liability

Reference no: EM132521145

Reference no: EM132521145

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