Question
On December 31, 2025, Tail Company was involved in a tax dispute with BIR. Tails tax counsel believed that an unfavorable outcome was probable and
On December 31, 2025, Tail Company was involved in a tax dispute with BIR. Tails tax counsel believed that an unfavorable outcome was probable and a reasonable estimate of additional taxes was P275,000, with a chance that the additional taxes could be as much as P425,000. After the 2025 financial statements were issued, Tail accepted the BIR settlement offer of P325,000. What amount of additional taxes should have been accrued in 2025?
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A Textbook Of Cost And Management Accounting
Authors: M N Arora
11th Edition
9390470501, 978-9390470501
