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nika2105 [10]
3 years ago
13

Oriole Shoes Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with

its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $803000. What is the required journal entry as a result of this litigation
Business
1 answer:
Leona [35]3 years ago
4 0

Answer:

No journal entries required

Explanation:

According to attorney estimation, the chances of winning the case are certain therefore no journal entry is required for adjustments since the chances of losing the case are very uncertain.

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Should underperforming restaurants be closed or sold?
crimeas [40]

Answer:

sold

Explanation:

Underperforming restaurants are those restaurants  which does not perform well. The restaurant does not run properly and no people or less people visits the restaurant for eating.

This can be due to several factors. The restaurant's location may not be good, the restaurant may not provide good quality and tasty food, or people might not find their required menu in that restaurant. All these factors leads to less people visiting the restaurant and less revenue generation.

In such a case, the owner of the restaurant must sell the restaurant to some other party so that he does not undergo any losses. By selling the property he will get some amount of his investment which he could utilize in his further projects.

Also by selling the restaurant, the employees of that restaurant will not go out of job and can feed their family.

So, the restaurant should be sold.

7 0
3 years ago
A farm is currently producing at point C on this curve.
lord [1]

Answer:

the farm would face trade offs in production of apples or oranges

Explanation:

i have a brain and I used it

8 0
4 years ago
Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mar
Oduvanchick [21]

Answer:

C. Neither Mary nor Sharon can claim breach of contract.

Explanation:

Mary buys a lottery ticket and promises to buy her friend Sharon a new pair of shoes if she checks the lottery results while Mary is away.

Sharon agrees to do so, provided she has the time for it.

If Sharon fails to check the results and Mary wins the lottery,  then it would be true of the contract between Mary and Sharon that Neither Mary nor Sharon can claim breach of contract.

The reason is Mary's promise is based on the condition that Sharon checks the result, Sharon's promise is based on the condition that 'if she has the time for it.'

The condition was not met by Sharon hence she cannot claim a breach of contract because she did not check the results, similarly, Mary cannot sue Sharon because sharon made it clear that she will only check If she has the time.

4 0
3 years ago
Manistee Corporation reported taxable income of $1,200,000 this year and paid federal income taxes of $408,000. Not included in
lidiya [134]

Answer:

$737,000

Explanation:

The computation of the current earnings and profits this year is shown below:

= Taxable income - federal income tax paid -  disallowed entertainment expenses + tax-exempt interest - net capital loss

= $1,200,000 - $408,000 - $25,000 + $20,000 - $50,000

= $737,000

Since we add the exempted interest and deduct all other expenses, losses, and taxes to the taxable income so that accurate value can come

7 0
3 years ago
Your company expects to receive CAD 1,200,000 in 90 days. The 90 day forward rate for CAD is $0.80 and the current spot rate is
Masteriza [31]

Answer:

Cost of hedging = $24,000

Explanation:

cost of hedging = 1,200,000 * ($0.80 - $0.82) = 1,200,000 * $0.02 = -$24,000

Since the actual forward rate was higher than th eexpected forward rte, the coampny lost money by hedging the operation. The cost of hedging the operation was $24,000.

4 0
3 years ago
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