Question 15. Enterprise Co is preparing its financial statements for the year ended 31 December 20X0 and has requested your opinion about the following events: (i) A flood on 9 January 20X1 caused uninsured damage to the company's main manufacturing facility totalling $200,000. (ii) The Directors declare a dividend of $1 per ordinary share on 7 January 20X1. The number of ordinary shares in issue is 100,000. The Directors plan to finalise the financial statements on 10 February 20X0. What liabilities should be recognised in the 31 December 20X0 financial statements?

Uninsured loss liability = NIL, Dividend liability = NIL

Uninsured loss liability = NIL, Dividend liability = $100,000

Uninsured loss liability = $200,000, Dividend liability = NIL

Uninsured loss liability = $200,000, Dividend liability = $100,000