What should be reported as a liability for the tax dispute

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Reference no: EM132782869

Question 1: During 2019, Learning! Inc. became involved in a tax dispute with the government. Learning's attorneys have indicated that they believe it is probable that Learning will lose this dispute. They also believe that Learning will have to pay the government between P800, 000 and P1, 400,000. After the 2019 financial statements were issued, the case was settled with the government for P1, 200,000. What amount, if any, should be reported as a liability for this tax dispute as of December 31, 2019?

Reference no: EM132782869

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