Question
The Roger corporation has a pending court case and the financial adviser indicates that it is likely that he will have a favorable judgment and
The Roger corporation has a pending court case and the financial adviser indicates that it is likely that he will have a favorable judgment and receive compensation in an amount that fluctuates between 100,000 and 150,000. What is the accounting treatment for this situation?
Journal entry recognizing the gain for 100,000
nothing is done
Journal entry recognizing the contingent debt for 125,000
Journal entry recognizing the gain for 150,000
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ANS WER Price variance 4 80 4 00 0 80 per strip Usage variance 288 000 strips 92 000 belts x 0 80 145 600 Total variance 145 600 0 80 145 600 80 Colum...
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Financial and Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
12th edition
978-1133952428, 1285078578, 1133952429, 978-1285078571
