1. on December 1, 2011, Martin Was Awarded Damages of $75,000 in a Patent Infringement Suit It Brought Against...

Week 3 Project Requirements The particular propositions 1 through 6 on a lower floor represent motley commitments and contingencies of Martin Inc. at declination 31, 2011 and events subsequent to declination 31, 2011, but prior to the issuance of the 2011 financial statements. Martin Inc. is preparing its financial statements for the year ended December 31, 2011. 1. On December 1, 2011, Martin was awarded damages of $75,000 in a obvious infringement tally it brought against a competitor. The defendant did non appeal the verdict, and compensation was received in January 2012. FASB codification 605-10-25 This item should be shine as accrued revenue. 2. A former employee of Martin has brought a wrongful-dismissal character against Martin. Martins lawyers believe the suit to be without merit. FASB computer mandate 450-20-25-2 This item should neither be accrued nor disclosed As this does not pertain to current breaker point & similarly it cannot be reasonably estimated. 3. At December 31, 2011 Martin had dandy supplement orders in the ordinary course of business for purchase of a raw material to be used in its manufacturing process. The foodstuff toll is currently higher than the purchase price and is not anticipated to change within the next year.

FASB Codification 820-10-50 This item should be disclosed, though not accrued as it would accept next accounting period. 4. A government gravel absolute during 2011 is subject to renegotiation. Although Martin estimates that it is reasonably possible that a give stick out of approxim ately $200,000-$300,000 may be required by t! he government, it does not wish to publicize this possibility. FASB Codification 450-20-25-2 This item should be accrued This relates to current period, and can be reasonably estimated. 5. Martin has been notified by a governmental agency that it will be held responsible for the kill of toxic materials at site where Martin formerly conducted operations. Martin estimates that it is probable...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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