Use the Following to Answer Questions 31 and 32

question 14

Multiple Choice

Use the following to answer questions 31 and 32:
REFERENCE 11-01
A foreign subsidiary of a U.S.-based company has been notified of a loss contingency with an estimated cost ranging between $220,000 and $250,000 which is probable of resulting in an actual loss. Each dollar amount within this range of cost is equally likely of being the actual outcome.
[QUESTION]
REFER TO: 11-01
-According to U.S.GAAP, what is the amount recognized as a provision for loss contingency?

• A) No amount will be recorded but an amount will be disclosed in the notes to the financial statements.
• B) $110,000
• C) $220,000
• D) $235,000
• E) $250,000

---

Definitions:

Negative Emotions

Feelings that are generally considered unpleasant or undesirable, such as sadness, anger, fear, and jealousy.

Primary Control

The effort to change the external world so that it aligns with one's personal desires or goals, often through direct action.

Secondary Control

The psychological strategy of influencing one's internal state to align with reality when external control is not possible.

Modify Reality

The act of changing or altering the perception or understanding of the real world, often through technology, art, or psychological means.