had $ 300,000 of liabilities. The fair value of May ' s assets when acquired were as follows:
6.( TCO D) Which of the following is a condition for accruing a liability for the cost of compensation for future absences?( Points: 5)
7.( TCO D) Which of the following taxes does not represent a payroll deduction a company may incur?( Points: 5)
8.( TCO D) Assume that a manufacturing corporation has( 1) good quality control,( 2) a one-year operating cycle,( 3) a relatively stable pattern of annual sales, and( 4) a continuing policy of guaranteeing new products against defects for three years that has resulted in material but rather stable warranty repair and replacement costs. Any liability for the warranty( Points: 5)
9.( TCO D) Jenkins Corporation has $ 2,500,000 of short-term debt it expects to retire with proceeds from the sale of 75,000 shares of common stock. If the stock is sold for $ 20 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities?( Points: 5)
10.( TCO D) Tender Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 40 % chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $ 500,000. What is the required journal entry as a result of this litigation?( Points: 5)