Answer:
a) Disclose in the notes
b) no Disclosure
c) Record a liability
Explanation:
There are three scenarios to be considered
1) It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable
First, premise is that Huprey Co. is facing a lawsuit and the possibility of a loss is most possible. If Huprey Co is able to recognize the amount of loss, then he would have been able to record a liability but the inability to estimate the loss means, the company can o<u>nly make appropriate disclosure in notes</u>
2)Huprey is being used for damages of $2 million. It is very unlikely (remote) that Huprey will lose the case.
This second premise is also a lawsuit on damages for $2 million, however, it is most reasonably acceptable that Huprey will win the lawsuit. As such there is no loss, that way there will be no disclosure in Huprey Co's books.
3. Huprey can reasonably estimate that a pending lawsuit will result in damages of $1.25 million, it is probable that Huprey will lose the case.
The probability of losing a case means that there will be a loss to be recorded in the books and since the damages are already estimable to be $1.25 million. Huprey Co should record a liability
Answer: $2,400; $2,400
Explanation:
If a deposit of $6,000 is made, the reserve requirement is 20% so the bank will have to reserve this amount of:
= 6,000 * 20%
= $1,200
The bank will be left with:
= 6,000 - 1,200
= $4,800
The bank lends all of this out.
The public holds 50% of the currency so they will keep:
= 50% * 4,800
= $2,400
The rest - which is $2,400 - will be deposited as checkable deposits.
Answer:
Option (A) is correct.
Explanation:
Given that,
Order costs for pepperoni = $10.00 per order
Carrying costs = 4 cents per pound per day
Lead time for each order = 3 days
Pepperoni itself costs = $3.00 per pound
Total Order = 80 pounds of pepperoni
Demand rate = 20
Total ordering cost = Total order × cost per order
= 80 × $10
= $800
Length of an order cycle:
= 4 days
D. office of student federal aid
