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Before the year-end, a company is assessed $200,000 in additional taxes as a result of...

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Accounting

Before the year-end, a company is assessed $200,000 in additional taxes as a result of an IRS audit. The company's tax attorney believes that a settlement with the IRS can be reached for $110,000. Settlement has not been reached before the financial statements are issued.

Should the company disclose this matter in the footnotes to the company's financial statements at year-end?

Please reference the appropriate accounting standards or other professional pronouncements

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