Question: QUESTION 6: PROVISION LIABILITY (5 points) ABC Co. presents the following information for 2020: A new product liability lawsuit was files related to the

QUESTION 6: PROVISION LIABILITY (5 points) ABC Co. presents the following information

QUESTION 6: PROVISION LIABILITY (5 points) ABC Co. presents the following information for 2020: A new product liability lawsuit was files related to the drug of the Pharmacy, the attorney's asses the likelihood (55%) and allows the company to record a loss under IFRS. If the range of estimates is between $100,000 and $200,000. 1. Determine the amount of Loss (if any) that ABC will accrue for 2020 using IFRS. $ (2 points) 2. If ABC Co. uses US GAAP, what is the effect of this transaction on Net Income in 2020? (3 points) Increase Decrease (select only one) Explanation and *calculations. It remains the same

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