A former employee is suing Whiler Co. for wrongful dismissal in the amount of $500,000....
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A former employee is suing Whiler Co. for wrongful dismissal in the amount of $500,000. Legal counsel believes that there is a 65% likelihood of Whiler losing the lawsuit and having to pay damages. The following probability distribution applies in this situation: Payout Probability $100,000 35% $250,000 45% $500,000 20% What provision should be accrued because of this event in Whiler's current-year financial statements? Assume Whiler uses IFRS. A $0 B $100,000 C $247,500 D $250,000
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