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In: Accounting
On November 4, 2019 HEMI was sued for $50,000,000 in damages because one of its transmissions...
On November 4, 2019 HEMI was sued for $50,000,000 in damages because one of its transmissions was incorrectly installed by Suncor repair technicians which resulted in significantproperty damage. HEMI’s lawyers are of the opinion that the lawsuit is without any merit as the transmission supplied by HEMI was working properly. The problem was with the incorrect installation of the transmission. HEMI plans to defend itself through the Canadian legal system which may take as long as 3 years. The Accountant has recorded$40,000,000 in the general ledger because$10,000,000 of damages will be paid for HEMI’s insurance company. What is the appropriate accounting treatment for this contingent loss(explain)? Provide an adjusting journal entry, if any, to properly account this contingent loss considering that the contingent loss is already recorded in the accounting records.
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ekkarill92 answered 2 years agoRelated Solutions
On November 4, 2019 McDonald’s Corporation fired its CEO for having a consensual relationship in the...
On November 4, 2019 McDonald’s Corporation fired its CEO for
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data on their stock price, the level of the S&P 500, and the
risk-free interest rate come from the days surrounding the
announcement:
Day
McDonald’s Price
S&P 500
Risk free rate
November 1
197.78
3050.72
.000046
November 4
190.16
3078.96
.000046
November 5
189.65
3075.10
.000046
McDonald’s has a Beta of .26.
(20 points) What is the expected return for McDonald’s...
On November 4, 2019 McDonald’s Corporation fired its CEO for having a consensual relationship in the...
On November 4, 2019 McDonald’s Corporation fired its CEO for
having a consensual relationship in the workplace. The following
data on their stock price, the level of the S&P 500, and the
risk-free interest rate come from the days surrounding the
announcement:
Day
McDonald’s Price
S&P 500
Risk free rate
November 1
197.78
3050.72
.000046
November 4
190.16
3078.96
.000046
November 5
189.65
3075.10
.000046
McDonald’s has a Beta of .26.
(20 points) What is the expected return for McDonald’s...
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Multiple Choice
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