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During 2020, Lakme Ltd. became involved in a tax dispute with the Canada Revenue Agency. The company's tax lawyers have told management that it is
During 2020, Lakme Ltd. became involved in a tax dispute with the Canada Revenue Agency. The company's tax lawyers have told management that it is probable that the company will lose this dispute. They also believe that the company will have to pay the Receiver General for Canada between $1,600,000 and $2.4 million. After the 2020 financial statements were issued, the case was settled with the Canada Revenue Agency for $1.9 million. What amount, if any, should be reported as a liability at December 31, 2020, assuming that the company follows IFRS? $2,400,000 $2,000,000 $1,600,000 $1,900,000
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