Question: For each situation below explain how they should be accounted for. If a journal entry is necessary, show it . a . During 2 0

For each situation below explain how they should be accounted for. If a journal entry is necessary, show it.
a.During 2020, Salt-n-Pepa Inc. became involved in a tax dispute with the IRS. Sal-n-Pepas attorneys have indicated that they believe it is probable that Salt-n-Pepa will lose this dispute. They also believe that Salt-n-Pepa will have to pay the IRS between $900,000 and $1,400,000. After the 2020 financial statements were issued, the case was settled with the IRS for $1,200,000. How should this be handled? Explain why.

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