PLEASE FOLLOW THE FF: PROVIDE DETAILED EXPLANATION OF THE C
PLEASE FOLLOW THE FF: PROVIDE DETAILED EXPLANATION OF THE CONCEPT… PLEASE FOLLOW THE FF:PROVIDE DETAILED EXPLANATION OF THE CONCEPTSHOW PROPER SOLUTIONSPROVIDE REFERENCE/LINKSNO HANDWRITTEN/PICTURE/SCREENSHOTS A company is being sued for illness caused to local residents as a result of negligence on the entity’s part in permitting the local residents to be exposed to highly toxic chemicals from its plant. The entity’s lawyer stated that it is probable that the entity will lose the suit and be found liable for a judgment costing the entity anywhere from P1,200,000 to P6,000,000. However, the lawyer estimated that the most probable cost is P3,600,000. What amount should be accrued and disclosed?2 points A loss contingency of P1,200,000 and disclose an additional contingency of up to P4,800,000 A loss contingency of P3,6000,000 and disclose an additional contingency of up to P2,400,000 A loss contingency of P3,600,000 but not disclose any additional contingency No loss contingency but disclose a contingency of P1,200,000 to P6,000,000 Accounting Business Financial Accounting
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