Wilson Company is involved in a litigation suit concerning the clean-up of old underground oil storage tanks on property it sold to a housing development company five years ago. The attorneys for Wilson Company cannot give a best estimate for the probable liability; however, the attorneys state that the liability to Wilson Company will probably fall within a range of $2 million to $10 million. According to the SEC, what should Wilson Company record with regards to this environmental liability?
Choose one answer.
a. No entry is required.
b. A loss and liability of $10 million.
c. A loss and liability of $6 million.
d. A loss and liability of $2 million.© BrainMass Inc. brainmass.com June 4, 2020, 1:24 am ad1c9bdddf
The solution provides the correct answer to the Wilson Company multiple choice question, which examines what Wilson Company should record with regards to their environmental liability.