On october 1 2012 holmgren chemical was identified as a, Ask an Expert

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On October 1, 2012, Holmgren Chemical was identified as a potentially responsible party by the Environmental Protection Agency. Holmgrens management along with its counsel have concluded that it is probable that Holmgren will be responsible for damages, and a reasonable estimate of these damages is $6,000,000. Holmgrens insurance policy of $9,000,000 has a deductible clause of $500,000. How should Holmgren Chemical report this information in its financial statements at December 31, 2012?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9956932

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