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Blaylock Enterprises evaluates each of the following situations to determine whether the firm should make a journal entry and/or disclosure in the annual financial statements.
Blaylock Enterprises evaluates each of the following situations to determine whether the firm should make a journal entry and/or disclosure in the annual financial statements. A: A Blaylock Enterprise manufacturing plant in a foreign country is subject to expropriation (foreign government taking their asset). Blaylock Enterprises believes this is reasonably possible. B: Blaylock Enterprises has sued a competitor for copyright infringement. The lawyers believe Blaylock Enterprises is probable to win the case and will most likely receive payment of $500,000. C: Blaylock Enterprises is subject to potential costs related to product defects. The loss is probable but the amount is not reasonably estimable. O A: Disclose B: Accrue C: Disclose OA: Disclose B: Accrue C: Accrue OA: Disclose B: Do nothing C: Disclose OA: Accrue B: Do nothing C: Accrue OA: Accrue B: Accrue C: Disclose
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