can you please explain why E 9-14 Unasserted assessment OL09-6 At April 1, 2023,...
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can you please explain why
E 9-14 Unasserted assessment OL09-6 At April 1, 2023, the Environmental Protection Agency, a government agency is in the process of investigating a possible chemical leak last June at a facility of Shu Lamination. The EPA has not yet proposed a penalty assessment. Shu's financial year ends on December 31, 2022. The company's financial statements are published in April 2023. Required: For each of the following scenarios, determine the appropriate way to report the situation. Explain your reasoning and prepare any necessary journal entry. 1. Management feels an assessment is possible, and if an assessment is made an unfavorable settlement of $13 million is possible. 2. Management feels an assessment is possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. Management feels an assessment is probable, and if an assessment is made an unfavorable settle- ment of $13 million is possible. 4. Management feels an assessment is probable, and if an assessment is made an unfavorable set- tlement of $13 million is probable
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