Chichirita, Corp is the guarantor of a P1,500,000 notes payable of Ramos, Inc to BPI. During the
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Chichirita, Corp is the guarantor of a P1,500,000 notes payable of Ramos, Inc to BPI. During the year, Ramos, Inc. was unable to operate for four months due to an ongoing pandemic. As of December 31, 2020, Sarzuela's management deemed that it is reasonably possible that Ramos will not be to pay the principal amount of the loan.
On January 26, 2021 Ramos declared bankrupcy. Chichirita's financial statements were released on January 28, 2021.
How much is the provision liability as of December 31, 2020?
Expert Answer:
Based on the available information we can calculate the provision liability as follows Provision lia... View the full answer
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