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help me please thank you 6) On December 25, 2019, an employee filed a P3,000,000 lawsuit against Oslo company for damages suffered when one of
help me please thank you
6) On December 25, 2019, an employee filed a P3,000,000 lawsuit against Oslo company for damages suffered when one of Oslo's equipment malfunctioned in August of 2019. The legal counsel of the company believes that it is probable that Oslo will pay the damages ranging between P500,000 to P1,000,000 but P820,000 is considered to be the best estimate of the obligation. On March 1, 2020, the employee has offered to settle the lawsuit out of court of P925,000 and the company accepted the offer and settled the amount. The financial statements were authorized to be issued on March 31, 2020. How much is the provision that should be recognized as of December 31, 2019? A 820,000 B. 925,000 C. 750,000 D. 1,000,000 Step by Step Solution
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