Question
4) Liabilities The company closes on 12/31/2019. On 12/20/2019 it is reported that one of the sales locations will be closed in February 2020, in
4) Liabilities The company closes on 12/31/2019. On 12/20/2019 it is reported that one of the sales locations will be closed in February 2020, in which a severance payment of $ 36,500 must be made for 10 employees who work in said location. The total number of employees of the company is 10,000. The balance already accounted for the provision for layoffs as of 12/31/2019 is $ 45,200. It had been accounted for on 12/31/2018 and there were no layoffs during 2019.
What should the company do in the 2019 balance sheet? to nothing. b) Only report the situation in notes to the Financial Statements. c) Record the loss for $ 36,500 as of 12/31/2019. d) Make a forecast adjustment as of 12/31/2019 against results for $ 8,700. e) Make a forecast adjustment as of 12/31/2019 against results for $ 45,200. f) None of the above.
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