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leonid [27]
3 years ago
8

Buzz Coffee Shops is famous for its large servings of hot coffee. After a famous case involving McDonald’s, the lawyer for Buzz

warned management (during 2014) that it could be sued if someone were to spill hot coffee and be burned. "With the temperature of your coffee, I can guarantee it’s just a matter of time before you’re sued for $1,000,000." Buzz felt the likelihood was remote. Unfortunately, in 2016, the lawyer’s prediction came true when a customer filed suit. After consulting with his attorney, Buzz felt the loss was possible but not likely or probable. The case went to trial in 2017, and the jury awarded the customer $400,000 in damages, which the company immediately appealed. Buzz felt a loss was probable but believed a lower amount could be negotiated. During 2018, the customer and the company settled their dispute for $150,000. What is the proper recording of this liability each year from 2016 through 2018 under GAAP?
Business
1 answer:
Tasya [4]3 years ago
7 0

Answer:

the proper recording of this liability each year from 2016 through 2018 under GAAP is $150,000.

Explanation:

since the first amount cannot be determinable now, we cannot record it as a liability.

After the settlement of the dispute by the customer and company outside the court the company should record the loss and a liability at an amount of $150,000 because it is certain and determinable now.

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When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off.
blondinia [14]
It is true because a country that imports a tariff on shoes buyers of shoes in that country don’t do well so the answer would be True
7 0
2 years ago
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity i
victus00 [196]

Answer:

Quantity variance.

Explanation:

The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the Quantity variance.

For instance, if Tony needs a standard quantity of 50 pounds of iron to construct a burglary, but only used 51 pounds, then the quantity variance is 1 pound of iron.

<em>Hence, the quantity variance is simply the difference between the actual quantity of materials that should be used and the quantity of materials that was used. </em>

5 0
3 years ago
Block Island TV currently sells large televisions for $ 380. It has costs of $ 310. A competitor is bringing a new large televis
Fofino [41]

Answer:

$281.67

Explanation:

Data provided in the question:

Current selling price of large TV = $380

Cost of Large TV = $310

Selling price of new TV = $340

Increase in sales = 20% = 0.20

Current sales = $150,000

Now,

Expected sales after reducing the price = Current sales + Increase in sales

= 150,000 + ( 0.20 × 150,000 )

= 150,000 + 30,000

= 180,000

Target Operating income = ( $380 - $310 ) × current sales

= $70 × 150,000

= $10,500,000

New operating cost per unit

= Target Operating income ÷ Expected sales after reducing the price

= $10,500,000 ÷  180,000

or

New operating cost per unit = $58.33

Target Cost

= Price after reduction - New operating cost per unit

= $340 - $58.33

= $281.67

3 0
3 years ago
1. Which statement about leaders and managers is most likely false?
morpeh [17]

Answer:

I'd say A!

Explanation:

hope this helps! sorry if it's wrong

8 0
3 years ago
Oz has a bachelor's degree in nursing which employer might be interested in hiring Oz A. medical billing company in need of a co
Diano4ka-milaya [45]

Answer:

b.

Explanation:

small school district needing a nurse

4 0
2 years ago
Read 2 more answers
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