Question
A business owner owns personal rental property. A tenant sues her for health issues related to improper maintenance of gas lines. How should this be
A business owner owns personal rental property. A tenant sues her for health issues related to improper maintenance of gas lines. How should this be treated in analyzing the business owner's personal liabilities?
A) Obtain the exact amount being claimed in the lawsuit and include this amount in current liabilities.
B) Disregard the lawsuit because personal rental property is unrelated to the business.
C) Disregard the lawsuit until a judgment or settlement is reached, or include an estimated amount as a contingent liability.
D) Disregards the lawsuit until the business owner discloses an amount on her personal financial statement
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