Nicole inc uses igaap for its external financial reporting

Assignment Help Accounting Basics

Reference no: EM13602759

Nicole, Inc. uses iGAAP for its external financial reporting. During 2009, an employee of the company was injured in the factory. Discussions with corporate attorneys resulted in a determination that the company would be required to pay between $1,000,000 and $2,000,000 to settle the injury claim. Nicole, Inc. accrued a contingent liability on December 31, 2009 for $1,000,000. On February 4, 2011, Nicole, Inc. settled the lawsuit for $2,200,000. What amount of loss should be reported on the income statement for the year ended December 31, 2010 for Nicole, Inc. related to this lawsuit?

Reference no: EM13602759

Questions Cloud

What is the difference between budget lapsing and line-item : a. what is the difference between budget lapsing and line-item budgets?b. what types of organizations would you expect

Coy inc initially issued 200000 shares of 1 par value stock : coy inc. initially issued 200000 shares of 1 par value stock for 1000000 in 2009. in 2010 the company repurchased 20000

Topeka bike company received a 940 check from a customer : topeka bike company received a 940 check from a customer for the balance due. the transaction was erroneously recorded

Bakels company issued a 100000 20 year bond with a stated : bakels company issued a 100000 20 year bond with a stated interest rate of 6. assume interest payments are made

Nicole inc uses igaap for its external financial reporting : nicole inc. uses igaap for its external financial reporting. during 2009 an employee of the company was injured in the

Dckhand associates inc manufacturers womens boating shoes : deckhand associates inc. manufacturers womens boating shoes. manufacturing overhead is assigned to production on a

Truestar communication issue 90000 of 9 10 year bonds : truestar communication issue 90000 of 9 10 year bonds payable on august 1 2012 at par value. truestars accounting year

A security analyst has regressed the monthly returns on : a security analyst has regressed the monthly returns on berkshire hathaway equity shares over the past five years

Why would a company maintain seperate accounts receivable : why would a company maintain seperate accounts receivable ledgers for each customer as opposed to maintaining a single

User Account

All Pages