A local retailer selling general merchandise collects sales taxes for the city and state. The...
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Accounting
A local retailer selling general merchandise collects sales taxes for the city and state. The city sales tax is 4%, and the state sales tax is 3%. The retailer remits sales tax f the retailer sold $650,000 of general merchandise in January and $400,000 in February, what would the balance of the current liability in the sales tax payable account be as of February 28?
$28,000; $45,500; $60,000; $73.500
A company has a possible favorable outcome in ending litigation against a competitor for patent infringement in the amount of $5.000.000. Lawyers asses the probability of success at 60% and the likely award to be $4,000,000. The company estimates that it could probably collect $2,000,000 of the award from the defendant. How should the company report the litigation?
Gain contingency of $2,000,000
Gain contingency of $4,000,000
Gain contingency of $5,000,000
The gain contingency would not be reported
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