Involved in a penalty dispute with the EPA

Assignment Help Financial Accounting

Reference no: EM13753124

In May of 2011 Daemon Financial Services became involved in a penalty dispute with the EPA. At December 31, 2013, the environmental attorney for Daemon indicated that an unfavorable outcome to the dispute was probable. the additional penalties were estimated to be $770,000, but could be as high as $1,170,000. After the year-end but before the financial statements for 2013 were issued, Daemon accepted the EPA settlement offer of $900,000. Daemon should have reported an accrues liability on its December 31, 2013 balance sheet of:

A. $770,000

B. $900,000

C. $970,000

D. $1.170,000

E. Some other amount ____________ (Enter answer)

Reference no: EM13753124

Questions Cloud

Environmental attorney for daemon indicated : In May of 2011 Daemon Financial Services became involved in a penalty dispute with the EPA. At December 31, 2013, the environmental attorney for Daemon indicated that an unfavorable outcome to the dispute was probable.

Complete the final examination : Resource: Principals of Managerial Finance and Fundamentals of Corporate FinanceThis is your chance to use your imagination! Create your own company and describe it. Then create the financial portion of your organization's strategic plan.

Describe some of the companys response strategies : Identify the role of IT as a contributor to the business technology pressures (for example, obsolescence). Describe some of the company's response strategies

Primary methods of capital budgeting : You are the new chief financial officer (CFO) hired by a company. The chief executive officer (CEO) indicates that in the past, there was little rhyme or reason for the prior CFO to approve or disapprove of large capital projects or investments th..

Involved in a penalty dispute with the EPA : In May of 2011 Daemon Financial Services became involved in a penalty dispute with the EPA. At December 31, 2013, the environmental attorney for Daemon indicated that an unfavorable outcome to the dispute was probable.

What alternative measures of organizational performance : What alternative measures of organizational performance, besides share prices, do you think might change the focus of business leaders. What do you think the likely impact of the growth of temporary employment relationships will be for employee at..

Using the book value method conversion : On July 1, 2008, an interest payment date, $30,000 of Young Co. bonds were converted into 600 shares of Young Co. common stock, each share having a par value of $45 and a market value of $54. There was $1,200 of unamortized discount on the bonds (aft..

Amount of yen : In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars?

Cash disbursements for the month of april : The following data have been taken from the budget reports of Sequioia Company, a merchandising company, which purchases merchandise inventory and sells to customers. The information on the sales to customers and the purchase of the inventory is give..

User Account

All Pages