On October 1, 2015, Surround Co. was identified as a potentially responsible party by the Environmental Protection
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On October 1, 2015, Surround Co. was identified as a potentially responsible party by the Environmental Protection Agency. Surround management along with its counsel have concluded that it is probable that Surround Co. will be responsible for damages, and a reasonable estimate of these damages is $5,000,000. Surround insurance policy of $9,000,000 has a deductible clause of $500,000. How should Surround Co. report this information in its financial statements at December 31, 2015?
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
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