Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $350,000. The company is contesting the fine. In addition, an employee is seeking $430,000 in damages related to the spill. Lastly, a homeowner has sued the company for $220,000. The homeowner lives 30 miles from the plant but believes that the incident has reduced the home's resale value by $220,000. Ayers' legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settlement of $180,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner's case is much weaker and will be decided in favor of Ayers. Other litigation related to the spill is possible, but the damage amounts are uncertain. a. Journalize the contingent liabilities associated with the hazardous materials spill. Use the account "Damage Awards and Fines" to recognize the expense for the period. If an amount box does not require an entry, leave it blank. 88 b. The company experienced a hazardous materials spill at one of its plants during the previous period. This spill has resulted in a number of lawsuits to which the company is a party. The Environmental Protection Agency (EPA) has fined the company $ which the company is contesting in court. Although the company admit fault, legal counsel believes that the fine payment is out-of-court settlement has been reached with the In addition, an employee has sued the company. A $ employee. The EPA fine and out-of-court settlement have been recognized as outstanding lawsuit related to this incident. Counsel for the period. There is one other believe that the lawsuit has merit. Other lawsuits and unknown liabilities may arise from this incident. Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $350,000. The company is contesting the fine. In addition, an employee is seeking $430,000 in damages related to the spill. Lastly, a homeowner has sued the company for $220,000. The homeowner lives 30 miles from the plant but believes that the incident has reduced the home's resale value by $220,000. Ayers' legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settlement of $180,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner's case is much weaker and will be decided in favor of Ayers. Other litigation related to the spill is possible, but the damage amounts are uncertain. a. Journalize the contingent liabilities associated with the hazardous materials spill. Use the account "Damage Awards and Fines" to recognize the expense for the period. If an amount box does not require an entry, leave it blank. 88 b. The company experienced a hazardous materials spill at one of its plants during the previous period. This spill has resulted in a number of lawsuits to which the company is a party. The Environmental Protection Agency (EPA) has fined the company $ which the company is contesting in court. Although the company admit fault, legal counsel believes that the fine payment is out-of-court settlement has been reached with the In addition, an employee has sued the company. A $ employee. The EPA fine and out-of-court settlement have been recognized as outstanding lawsuit related to this incident. Counsel for the period. There is one other believe that the lawsuit has merit. Other lawsuits and unknown liabilities may arise from this incident.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Several months ago, Reiltz Industries, Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $570,000. The...
-
Several months ago, Rainbow Paint Company experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $560,000. The company...
-
In Problems 25 54, solve each system. Use any method you wish. 2xxy + y = 8 xy = 4
-
For 9a-d, graph the equations on your calculator. a. y = x2 b. y = x3 c. y = x4 d. y = x5 e. How do the graphs compare? How do they contrast? What points (if any) do they have in common? f. Predict...
-
Pelletier has $107,000 capital and Haymer has $55,000 capital in the Pelletier & Haymer partnership. Pelletier and Haymer share profits and losses equally. Todd Parker contributes cash of $54,000 to...
-
A tugboat pulls two barges down the river. The barge connected to the tugboat, carrying coal, has an inertia of \(2.0 \times 10^{5} \mathrm{~kg}\), and the other barge, carrying pig iron, has an...
-
1. A building owned by Hopewell Company was recently valued at $850,000 by a real estate expert. The president of the company is questioning the accuracy of the firm's latest balance sheet because it...
-
The income statement shows: Multiple choice question. a firm's assets, liabilities, and stockholders equity inflows and outflows of cash a firm's profit (or loss) after costs, expenses, and taxes the...
-
Describe the key components of the human resources management process and important influences on that process
-
Although the merits and problems of breast-feeding versus using infant formula are debated in the United States and other developed countries, the issue is not so balanced in third-world nations....
-
Once the Consumer Product Safety Commission prohibits the sale of a particular product in the United States, a manufacturer can no longer sell the product to U.S. wholesalers or retailers. However,...
-
The global market presents firms with more complex ethical issues than they would experience if operations were limited to one country and one culture. Moral standards vary across cultures. In some...
-
It all began with a raid by Chinese officials on a small travel agency in Shanghai. What the investigators found were fake contracts and travel invoices that were used to cover payments to doctors,...
-
"Troll Tracker" was a popular blogger in the world of patent litigation. In fact, the blogger confessed to being a patent lawyer. The focus of the blog was "patent trolls," the name patent lawyers...
-
ABC Company has prepared its 3rd quarter budget and provided the following data: The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000...
-
One hundred pounds of water at atmospheric pressure are heated from 60F to 200F. What is the enthalpy change? The internal energy change? Why is the difference between the internal energy change and...
-
Consider a situation in which you do not know the timing or amounts of individual cash flows. However, you do know the discounted and summed values of the revenues, \(\sum R t^{*}(P \mid F, M A R R,...
-
True or False: Benefits and disbenefits must be converted to monetary values to use benefit-cost analysis.
-
Elm City is considering a replacement for its police radio. The benefits and costs of the replacement are shown below. What is the replacement's benefit/cost ratio if the effective annual interest...
Study smarter with the SolutionInn App