(12 points) Jefferson National has the following subsequent events prior to rele

Question

(12 points) Jefferson National has the following subsequent events prior to release of their financial statement. Please identify the action that the company should take (a) adjust the financial statements (b) disclosed (c) neither

1. Company fires the President.

Company settles a lawsuit for $1.5 million above their prior estimate.

There is an earthquake damaging its California branch office.

The Company settles a tax dispute with the IRS above prior estimate

Four small customers decide to move their business to a competitor

A large customer declares bankruptcy, reducing chances of collection.

. There is fire damage to the Company data center

____ 8.The Company signs an agreement for naming rights to a new stadium.

Explanation / Answer

1.Company fires the President.

(c) neither

2. Company settles a lawsuit for $1.5 million above their prior estimate.

a) adjust the financial statements

3. There is an earthquake damaging its California branch office.

(b) disclosed

4. The Company settles a tax dispute with the IRS above prior estimate

a) adjust the financial statements

5. Four small customers decide to move their business to a competitor

(c) neither

6. A large customer declares bankruptcy, reducing chances of collection.

(b) disclosed

7. There is fire damage to the Company data center

(b) disclosed

8. The Company signs an agreement for naming rights to a new stadium

(c) neither

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