Abbott Corp.'s attorney estimates that the company will ultimately have to pay between $350,000 and $500,000 relating to current litigation, and that the most likely amount of the loss will be equal to $400,000. Abbott Corporation should record a contingent liability and loss of

$400,000

Explanation:

Contingent liability and loss is explained as a loss that may or may not occur depending on uncertain events. Amount recorded for contingency loss is based on of the loss can be reasonably estimated. In this case, since the loss is probable and easy to estimate, and most likely amount be equal to 400,000, the amount that should be recorded as contingent liability and loss should be $400,000. The contingent liability can only be recorded when the loss or liability can be estimated. Otherwise, it should be written as disclosed.

answer; the correct answer to the above statement is (true);

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.