Joaquin used the table to predict the cost of one year of education at a four-year public university. Category Predicted Cost tu
ition $9,450 room and board $7,920 transportation $2,680 books and fees $1,875 other $930 He received a grant for $1,900. What is the minimum amount Joaquin will need to contribute to his education annually if he chooses to live at home? $13,035 $14,935 $20,955 $22,855
Explanation: In order to determine the minimum amount that Joaquin will need to contribute to his education annually if he lives at home you need to total his itemized costs. The total costs for living at home include tuition, transportation, books and fees and other expenses, which is $14,935. He received a grant of $1,900, which is subtracted from the total costs to reach $13,035. This amount of $13,035 is how much he will need to contribute annually to his education.
The management has estimated the loss contingency of lawsuit as reasonably possible. The Contingent liability is reasonably possible then it will be disclosed in the Notes to Financial Statements and not accrued in Balance sheet. If the contingent liability is probable then the accrual needs to be made in the Balance Sheet.