82. An estimated loss from a loss contingency that is probable and for which the amount of the loss can be reasonably estimated should
83. Finch Co. reported a total asset retirement obligation of $ 257,000 in last year’ s financial statements. This year, Finch acquired assets subject to unconditional retirement obligations measured at undiscounted cash flow estimates of $ 110,000 and discounted cash flow estimates of $ 68,000. Finch paid $ 87,000 toward the settlement of previously recorded asset retirement obligations and recorded an accretion expense of $ 26,000. What amount should Finch report for the asset retirement obligation in this year’ s balance sheet?
84. E & S Partnership purchased land for $ 500,000 on May 1, year 1, paying $ 100,000 cash and giving a $ 400,000 note payable to Big State Bank. E & S made three annual payments on the note totaling $ 179,000, which included interest of $ 89,000. E & S then defaulted on the note. Title to the land was transferred by E & S to Big State, which cancelled the note, releasing the partnership from further liability. At the time of the default, the fair value of the land approximated the note balance. In E & S’ s year 4 income statement, the amount of the loss should be
85. On December 31, year 1, Taylor, Inc. signed a binding agreement with a bank for the refinancing of an existing note payable scheduled to mature in February, year 2. The terms of the refinancing included extending the maturity date of the note by three years. On January 15, year 2, the note was refinanced. How should Taylor report the note payable in its December 31, year 1 balance sheet?
86. In March year 2, an explosion occurred at Nilo Co.’ s plant, causing damage to area properties. By May year 2, no claims had yet been asserted against Nilo. However, Nilo’ s management and legal counsel concluded that it was reasonably possible that Nilo would be held responsible for negligence, and that $ 3,000,000 would be a reasonable estimate of the damages. Nilo’ s $ 5,000,000 comprehensive public liability policy contains a $ 300,000 deductible