29) During 2019, Angles company guaranteed a supplier's P750,000 loan from a bank. On October 1,...

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29) During 2019, Angles company guaranteed a supplier's P750,000 loan from a bank. On October 1, 2019, Angels was notified that the supplier had defaulted on the loan and filed for bankruptcy protection. Counsel believes Angels will probably have to pay between P375,000 and P675,000 under its guarantee. As a result of the supplier's bankruptcy, Angels entered into a contract in December 2019 to retool its machines to that Angles could accept parts from other suppliers. Retooling costs are estimated to be P450,000. What amount should Angels report as a liability in its December 31, 2019, statement of financial position? A. 375,000 B. 525,000 C. 675,000 D. 975,000 29) During 2019, Angles company guaranteed a supplier's P750,000 loan from a bank. On October 1, 2019, Angels was notified that the supplier had defaulted on the loan and filed for bankruptcy protection. Counsel believes Angels will probably have to pay between P375,000 and P675,000 under its guarantee. As a result of the supplier's bankruptcy, Angels entered into a contract in December 2019 to retool its machines to that Angles could accept parts from other suppliers. Retooling costs are estimated to be P450,000. What amount should Angels report as a liability in its December 31, 2019, statement of financial position? A. 375,000 B. 525,000 C. 675,000 D. 975,000

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Solution Ans 375000 Option A Retooling costs are not included as a liability T... View the full answer