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(Solved): The Environmental Protection Agency notified ALGO Compuny on Februiry 2, 2005 thur it is being inves ...



The Environmental Protection Agency notified ALGO Compuny on Februiry 2, 2005 thur it is being investigated for leaking chemicals into Lake Superior during 2004. ALGO has not received an official findings letter and as such, ALGO classifies the allegations as an unattered claim. ALGO'S management feels an assessment is utimately probable in this case and a potential loss of 5900,000 is reasonably possible. The company's fiscal year ends on Devember 31, 2004. Fiscal 2024 financial statements will be issued on March 31, 2025. What should ALGO include in its fiscal 2024 financial statements related to this case? A. The company should not record or disclose anything. B. Disclosure in a footnote only. C. Accrual of $900,000 only. D. Accrual of $900,000 and disclosure in a footnote.



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