During 2020, salt-n-pepa inc. became involved in a tax dispute with the irs. salt-n-pepa’s attorneys have indicated that they believe it is probable that salt-n-pepa will lose this dispute. they also believe that salt-n-pepa will have to pay the irs between $900,000 and $1,400,000. after the 2020 financial statements were issued, the case was settled with the irs for $1,200,000. what amount, if any, should be reported as a liability for this contingency as of december 31, 2020

Krier industries has just completed its sales forecasts and its marketing department estimates that the company will sell 43,800 units during the upcoming year. in the past, management has maintained inventories of finished goods at approximately 3 months' sales. however, the estimated inventory at the start of the year of the budget period is only 7,300 units. sales occur evenly throughout the year. what is the estimated production level (units) for the first month of the upcoming budget year?