What amount of contingent liability shall be disclosed

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Reference no: EM132703281

Problem 1: WORLD Company discounted a one year noninterest bearing note receivable amounting to 5,000,000 on November 1, 2020, with recourse. This note will mature on January 31, 2021. WORLD accounted the discounting of note receivable as conditional sale with a recognition of contingent liability. What amount of contingent liability shall be disclosed in the financial statements for the year ended December 31, 2020?

Group of answer choices

a.4,000,000

b.3,600,000

c.4,400,000

d.some other answer

e.5,000,000

Reference no: EM132703281

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