Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. . during 2018, a former employee of staple company

. During 2018, a former employee of Staple Company filed a lawsuit alleging age discrimination and...

60.1K

Verified Solution

Question

Accounting

. During 2018, a former employee of Staple Company filed alawsuit alleging age discrimination and asking for damages of$500,000. At December 31, 2018,Staple's legal counsel indicatedthat the likelihood of losing the lawsuit was possible but notprobable and a good estimate for any potential loss isapproximately $250,000 based on previous experience with similarcases. How should this suit be handled on the 2018 financialstatements?

Answer & Explanation Solved by verified expert
3.8 Ratings (514 Votes)
As per the GAAP the accounting treatment of a contingent loss depends upon the category of contingent loss Contingent loss can be classified as Probable Loss A probable loss refers to a situation in which the future event that will result    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

. During 2018, a former employee of Staple Company filed alawsuit alleging age discrimination and asking for damages of$500,000. At December 31, 2018,Staple's legal counsel indicatedthat the likelihood of losing the lawsuit was possible but notprobable and a good estimate for any potential loss isapproximately $250,000 based on previous experience with similarcases. How should this suit be handled on the 2018 financialstatements?

Other questions asked by students

Q

Two objects placed at some finite distance repel each other then Both must be positively...

Physics
Q

Which of the following represents the explicit formula for the Arithmetic Sequence?-33, -29, -25, -21,...

Basic Math
Q

Find the average value of f over the region D.f(x, y) = 4xy, D is...

Calculus
Q

Question 27 2 5 points In a connectel graph with no loops of multiple edges...

Algebra
Q

7 Predict the geometries of the following species using the VSEPR method a PC1 b...

Algebra
Q

Provide your answer below 2 0 14 0 6 DC

Algebra
Q

Accounting for a controlling financial interest An acquiring company issues 5,000 shares of...

Accounting
Q

Presented below are two independent situations: (a) Oriole Inc. acquired 10% of the 415,000...

Accounting
Q

Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 The following selected transactions...

Accounting
Q

P8-26A Intercorporate Bond Holdings and Other Transfers (Straight-Line Method) 60,000 On January 1, 20X5, Pond...

Accounting
Q

Scampini Technologies is expected to generate $125 million in free cash flow next year, and...

Finance
Q

Patrick has analyzed two mutually exclusive projects of similar size and has compiled the following...

Finance