Answer:Yes it should be reported.
$2.8 million should be reported in the the balance sheet as a liability.
Explanation: Contingent liabilities are liabilities that depend on the outcome of an event that may likely not occur.
Before they can be reported in financial statement, it must be able to estimate the value of such contingent liability and the liability must have a higher than 50% possiblity of being achieved.
If the value can be estimated, then the liability has a higher chance of being realised.
Qualifying contingent liabilities such as the $2.8 million estimated by Top Sound International should be recorded in the income statement as an expense and a liability on the balance sheet.
Therefore the $2.8 million liability should be reported in its 2018 balance sheet
Answer:
C) formed a valid contract because Rachel's outward expressions showed the formation of a contract.
Explanation:
A valid contract is a binding and enforceable agreement, where all parties are legally bound to perform the contract.
Probably the most important part of a contract is the existence of an offer and acceptance. Once a valid offer is accepted, it binds the parties into a valid contract.
In this case, Rachel accepted Julius´s offer to buy her boat, so an offer and acceptance exists.
That would be government regulations because the government always ensures consumers safety.
