AFM391 Lecture Notes - Lecture 1: Wrongful Dismissal, Delaware Route 1
8 Dec 2017
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Bank agreed to provide . 5m face value @ 9% discount rate, interest annual. Need d/e = 1:1, where debt is all liabilities. Bowman llp conducted dec 31, 2017 ye audit. Htg sold 100 warranties for ,000 each on hot tubs, warranty period 5 years: historically costed each year, uses cash basis to recognize expense and warranty revenues, 2017, no warranty costs incurred. Need clean up of area every 10 years, ,000 in 10 years (no need for rexonition) Jan 1, 2017 bought inventory with interest-free loan with promise to repay ,000 in 2 years: recognized loan as ,000; dec 31,2017, inventory net realized value. June 30, 2017, employee launched wrongful dismissal suit for ,000: lawyers expect payment of k to k but still in progress, didn"t recognize because thought htg would successfully defend.
