Business, 26.02.2020 02:46 tookie6208

Vaughn Manufacturing is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Vaughn's lawyer states that it is probable that Vaughn will lose the suit and be found liable for a judgment costing Vaughn anywhere from $1,840,000 to $9,030,000. However, the lawyer states that the most probable cost is $5,400,000.
As a result of the above facts, Vaughn should accrue .

A) a loss contingency of $1,840,000 and disclose an additional contingency of up to $7,190,000.
B) a loss contingency of $5,400,000 and disclose an additional contingency of up to $3,630,000.
C) a loss contingency of $5,400,000 but not disclose any additional contingency.
D) no loss contingency but disclose a contingency of $1,840,000 to $9,030,000.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 16:50, Softball6286

Carver company produces a product which sells for $30. variable manufacturing costs are $15 per unit. fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. a selling commission of 10% of the selling price is paid on each unit sold. the contribution margin per unit is:

Answers: 2

continue

Business, 21.06.2019 23:00, Tywan566

Each of the four independent situations below describes a sales-type lease in which annual lease payments of $12,500 are payable at the beginning of each year. each is a finance lease for the lessee. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 3 3 3 3 assetâ€™s useful life (years) 3 4 4 6 lessorâ€™s implicit rate (known by lessee) 14 % 14 % 14 % 14 % residual value: guaranteed by lessee 0 $ 5,000 $ 2,500 0 unguaranteed 0 0 $ 2,500 $ 5,000 purchase option: after (years) none 2 3 3 exercise price n/a $ 7,500 $ 1,500 $ 3,500 reasonably certain? n/a no no yes

Answers: 1

continue

Business, 22.06.2019 03:20, nakeytrag

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Answers: 1

continue

Business, 22.06.2019 11:00, hadwell34

You are attending college in the fall and you need to purchase a computer. you must finance the purchase because your parents will not purchase it for you, and you do not have the cash on hand to purchase it. in blank #1 determine which type of credit would you use to finance your purchase (installment, non-installment, or revolving credit). (2 points) in blank #2 defend your credit choice by explaining why your financing option is the best option for you. (2 points) in blank #3 explain why you selected that credit option over the other two options available. (2 points)

Answers: 3

continue

You know the right answer?

Vaughn Manufacturing is being sued for illness caused to local residents as a result of negligence o...