{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-09T14:49:55-04:00", "answer_date": "2024-06-09 14:49:55", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2519779", "url": "\/study-help\/questions\/dinoco-petroleum-faces-three-potential-contingency-situations-described-below-dinocos-2519779", "question_creation_date_js": "2024-06-09T14:49:55-04:00", "question_creation_date": "Jun 09, 2024 02:49 PM", "meta_title": "[Solved] ?Dinoco Petroleum faces three potential c | SolutionInn", "meta_description": "Answer of - ?Dinoco Petroleum faces three potential contingency situations, described below. Dinoco's fiscal year ends December 3 | SolutionInn", "meta_keywords": "dinoco,petroleum,faces,three,potential,contingency,situations,described,below,s,fiscal,year", "question_title_h1": "?Dinoco Petroleum faces three potential contingency situations, described below. Dinoco's fiscal year ends December 3 1 , 2 0 2 4 , ?and it issues", "question_title": "?Dinoco Petroleum faces three potential contingency situations, described below. Dinoco's fiscal year", "question_title_for_js_snippet": " Dinoco Petroleum faces three potential contingency situations, described below Dinoco's fiscal year ends December 3 1 , 2 0 2 4 , and it issues its 2 0 2 4 financial statements on March 1 5 , 2 0 2 5 In the initial trial in October, Dinoco lost a $ 1 2 8 million lawsuit resulting from a dispute with a supplier Although Dinoco feels it is probable it will have to pay the full amount, the case is under appeal at the end of the year Dinoco does not expect the case to have a material adverse effect on the company In November 2 0 2 3 , the state of Texas filed suit against Dinoco, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste On January 1 2 , 2 0 2 5 , Dinoco reached a settlement with state authorities Based upon discussions with legal counsel, it is probable Dinoco will require $ 1 4 8 million to cover the cost of violations Dinoco is the plaintiff in a $ 2 8 0 million lawsuit filed against a customer for damages due to lost profits from rejected contracts and for unpaid receivables The case is in final appeal, and legal counsel advises that it is probable Dinoco will prevail and be awarded $ 1 4 0 million Required Determine the contingent amount Dinoco would report in each situation for the year ended December 3 1 , 2 0 2 4 Note Enter your answers in dollars, not in millions ( i e $ 5 5 million should be entered as 5 , 5 0 0 , 0 0 0 ) 1 Contingent amount 2 Contingent amount 3 Contingent amount", "question_description": "\"image
?Dinoco Petroleum faces three potential contingency situations, described below. Dinoco's fiscal year ends December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>4<\/mn>,<\/mo><\/mrow><\/math> ?and it<\/span> <\/div>
issues its <\/span>2<\/mn>0<\/mn>2<\/mn>4<\/mn><\/mrow><\/math> ?financial statements on March <\/span>1<\/mn>5<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>5<\/mn>.<\/mo><\/mrow><\/math> <\/div>
In the initial trial in October, Dinoco lost a $<\/span>1<\/mn>2<\/mn>8<\/mn><\/mrow><\/math> ?million lawsuit resulting from a dispute with a supplier. Although Dinoco feels it is<\/span> <\/div>
probable it will have to pay the full amount, the case is under appeal at the end of the year. Dinoco does not expect the case to<\/span><\/div>
have a material adverse effect on the company.<\/span><\/div>
In November <\/span>2<\/mn>0<\/mn>2<\/mn>3<\/mn>,<\/mo><\/mrow><\/math> ?the state of Texas filed suit against Dinoco, seeking civil penalties and injunctive relief for violations of<\/span> <\/div>
environmental laws regulating hazardous waste. On January <\/span>1<\/mn>2<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>5<\/mn>,<\/mo><\/mrow><\/math> ?Dinoco reached a settlement with state authorities. Based<\/span> <\/div>
upon discussions with legal counsel, it is probable Dinoco will require $<\/span>1<\/mn>4<\/mn>8<\/mn><\/mrow><\/math> ?million to cover the cost of violations.<\/span> <\/div>
Dinoco is the plaintiff in a $<\/span>2<\/mn>8<\/mn>0<\/mn><\/mrow><\/math> ?million lawsuit filed against a customer for damages due to lost profits from rejected contracts<\/span> <\/div>
and for unpaid receivables. The case is in final appeal, and legal counsel advises that it is probable Dinoco will prevail and be<\/span><\/div>
awarded $<\/span>1<\/mn>4<\/mn>0<\/mn><\/mrow><\/math> ?million.<\/span> <\/div>
Required:<\/span><\/div>
Determine the contingent amount Dinoco would report in each situation for the year ended December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mtext>2<\/mn>0<\/mn>2<\/mn>4<\/mn>.<\/mo><\/mrow><\/math> <\/div>
Note: Enter your answers in dollars, not in millions <\/span>(<\/mi><\/mrow><\/math>i<\/span>.<\/mo><\/mrow><\/math>e<\/span>.<\/mo><\/mrow><\/math> ?$<\/span>5<\/mn>.<\/mn>5<\/mn><\/mrow><\/math> ?million should be entered as <\/span>5<\/mn>,<\/mo>5<\/mn>0<\/mn>0<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn><\/mtext>)<\/mi>.<\/mo><\/mrow><\/math> <\/div>
?<\/span>1<\/mn>.<\/mo><\/mrow><\/math> ?Contingent amount <\/span> <\/div>
?<\/span>2<\/mn>.<\/mo><\/mrow><\/math> ?Contingent amount <\/span> <\/div>
?<\/span>3<\/mn>.<\/mo><\/mrow><\/math> ?Contingent amount <\/span> <\/div><\/span> <\/div><\/div> \"image", "transcribed_text": "", "related_book": { "title": "Managerial Accounting", "isbn": "1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445", "edition": "2nd edition", "authors": "Charles E. Davis, Elizabeth Davis", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/281.jpg", "uri": "\/textbooks\/managerial-accounting-2nd-edition-281", "see_more_uri": "" }, "free_related_book": { "isbn": "0253036674", "uri": "\/textbooks\/the-railroad-photography-of-lucius-beebe-and-charles-clegg-1st-edition-9780253036674-108919", "name": "The Railroad Photography Of Lucius Beebe And Charles Clegg", "edition": "1st Edition" }, "question_posted": "2024-06-09 14:49:55", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/what-criteria-must-be-met-before-a-contingency-must-be", "description": "What criteria must be met before a contingency must be recorded as a liability? 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