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Question - Hilltop Corporation is the defendant in a lawsuit that alleges that Hilltop guilty of pollution the local river. The city is seeking damages of $500,000. Hilltop's attorney believes that a settlement is imminent and the loss will be between $350,000 and $400,000.
1. What amount should Hilltop accrue assuming that GAAP are applicable?
2. What amount should Hilltop accrue assuming that IFRS are applicable?
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