Acustomer got serious food poisoning from tasty feast restaurant on march 30, 20x2, necessitating a trip to the emergency room.
on april 5, 20x2, the customer initiated a lawsuit. at december 31, 20x2, tasty feast estimated its probable loss to be $50,000.
in january, 20x3, before issuance of tasty feast’s financial statements, a judge ruled in favor of the customer and awarded the customer $80,000 in damages.

must the company recognize the effects of this ruling in its 20x2 financial statements? explain.

On january 8, the end of the first weekly pay period of the year, regis company's payroll register showed that its employees earned $22,760 of office salaries and $70,840 of sales salaries. withholdings from the employees' salaries include fica social security taxes at the rate of 6.20%, fica medicare taxes at the rate of 1.45%, $13,260 of federal income taxes, $1,450 of medical insurance deductions, and $860 of union dues. no employee earned more than $7,000 in this first pay period. required: 1.1 calculate below the amounts for each of these four taxes of regis company. regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid to each employee. the federal unemployment tax rate is 0.60