Legal liability with respect to asbestos claims

Reference no: EM131091352

1) Crane has much legal liability with respect to asbestos claims, but it has insurance that lessens the burden. Via a T-account analysis, estimate the 2015 cash receipts from the insurance companies and estimate 2015 cash disbursements because of these asbestos liabilities. Compare your answers with those provided in the cash flow statement?

Also Included the AnnuaL Report. Please Check

Cashflow Statement

2)Combine land, buildings and improvements, and machinery and equipment into one property, plant, and equipment (PPE) account. Recreate the T-account for gross PPE, recognizing 2015 transactions that increased or decreased the account from its 2015 beginning balance to its ending balance in 2015. Also re-create the T-account and its transactions for accumulated depreciation for 2015.

What is the summary journal entry for the sale or disposal of PPE in 2015? What is the gain or loss on this transaction?

3) Evaluate the persistence of earnings of Crane in 2014 and 2015 and rate the firm on a scale from 1 (weak) to 10 (strong).Please explain in detail why you choose this and show any necessary calculations.

Reference no: EM131091352

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