The following three independent sets of facts relate to contingent liabilities:

(1) in november of the current year, an automobile manufacturing company recalled all pickup trucks manufactured during the past two years. a flaw in the battery cable was discovered and the recall provides for replacement of the defective cables. the estimated cost of this recall is $2.3 million.
(2) the epa has notified a company of violations of environmental laws relating to hazardous waste. these actions seek cleanup costs, penalties, and damages to property. the company is reasonably certain there will be cost associated with the cleanup, but cannot estimate the amount. the cleanup cost could be as high as $4,030,000 or as little as $530,000 and insurance could reimburse all or part of the cost. there is no way to more accurately estimate the cost to the company at this time. (3) holland company does not carry property damage insurance because of the cost. the company has suffered substantial losses each of the past three years. however, it has had no losses for the current year. management thinks this is too good to be true and is sure there will be significant losses in the coming year. however, the exact amount cannot be determined.

what are three categories of contingent liabilities?

On april 1, santa fe, inc. paid griffith publishing company $2,448 for 36-month subscriptions to several different magazines. santa fe debited the prepayment to a prepaid subscriptions account, and the subscriptions started immediately. what amount should appear in the prepaid subscription account for santa fe, inc. after adjustments on december 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?

Which statement or statements are implied by equilibrium conditions of the loanable funds market? a firm borrowing in the loanable funds market invests those funds with a higher expected return than any firm that is not borrowing. investment projects which use borrowed funds are guaranteed to be profitable even after paying interest expenses. the quantity of savings is maximized, thus the quantity of investment is maximized. a loan is made at the minimum interest rate of all current borrowing.

2. taxes paid for a given income level rosa is getting ready to do her taxes. she is single and lives in denver. rosa earned $60,000 in taxable income in 2015. she reviews the following table, which shows the irs tax rates for a single taxpayer in 2015. on annual taxable the tax rate (percent) up to $9,225 10.0 from $9,225 to $37,450 15.0 from $37,450 to $90,750 25.0 from $90,750 to $189,300 28.0 from $189,300 to $411,500 33.0 from $411,500 to $413,200 35.0 over $413,200 39.6 based on the irs table, rosa calculates that her marginal tax rate is when her annual taxable income is $60,000. rosa calculates that she owes in income taxes for 2015. rosa then calculates that her average tax rate is , based on the annual income level and the amount of taxes she owes for 2015. after figuring out what she owes in taxes in 2015, rosa decides to ask an accountant for tax advice. the accountant claims that he has found a legal way to shelter $4,000 of taxable income from the federal government. the maximum amount that rosa is willing to pay to learn this strategy and reduce her taxable income by $4,000 is . (hint: sheltering some income means finding a legal way to avoid being charged income tax on that income. for example, someone who has $50,000 in taxable income and shelters $10,000 pays income tax on only $40,000.)