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Loss contingency

A company has a loss that meets the requirement of a loss contingency in the amount of $500,000. The company has insurance coverage in the amount of 1,000,000 with a deductible of 250,000. What amount should be accrued for the loss contingency?

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The insurance policy amount is $1,000,000 and the deductible of $250,000 implies that ...

Solution Summary

The solution explains the amount to be accrued for a loss contingency