contestada

Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.

Required:

1. The likelihood of a payment occurring is probable, and the estimated amount is $1.29 million.

2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.09 to $1.29 million.

3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.29 million.

4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.29 million.

Respuesta :

Answer:

See attached accounting entries.

Explanation:

For question 1, the likelihood of a payment occurring is probable, the is chance that Pacific Cruise Lines will pay liability as such estimated amount of $1.29 million should be set aside.

For question 2, the likelihood of a payment occurring is probable, the is chance that Pacific Cruise Lines will pay liability as such estimated maximum amount of $1.29 million should be set aside.

For question 3, the likelihood of a payment occurring is reasonably probable, the is chance that Pacific Cruise Lines will pay liability as such estimated amount of $1.29 million should be set aside.

For question 3, the likelihood of a payment occurring is remote, that is, there little relationship with this case that cause Pacific Cruise Lines being liable to pay as such potential amount of $1.29 million should be set aside.

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