On November 5, 2014, a Longhaul Rental truck was in an accident with an auto driven by Alana Rodriguez. Longhaul Rental received notice on January 12, 2015, of a lawsuit for $700,000 damages for personal injuries suffered by Rodriguez. Longhaul Rental's counsel believes it is probable that Rodriguez will be awarded an estimated amount in the range between $300,000 and $550,000, and that $400,000 is a better estimate of a potential liability than any other amount. Longhaul's accounting year ends on December 31, and the 2014 financial statements were issued on March 2, 2015. What amount of loss should Longhaul accrue on December 31, 2014?

a. $0

b. $300,00

c. $400,000

d. $550,000

Answer rating: 100% (QA)

Solution The option C 400000 is the correct option Expl... View the full answer