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- Payable to Company Founder Jensen Inc. has a $500,000 note payable due to its founder,...

- Payable to Company Founder Jensen Inc. has a $500,000 note payable due to its founder, Jen Jensen Ms. Jensen is recently deceased and has no heirs that Jensen Inc.'s executive team is aware of. The company has asked your help to determine whether it is appropriate to derecognize the liability from its financial statements.

1- Required to Jensen Inc. Describe the applicable guidance requirements, including excerpts as needed to support your response.

2-Next, explain how you located the relevant guidance, including the search method used and which section you searched within the appropriate topic.

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Answer #1

1- No,the company cannot de-recognize the liability from its financial statements.

As per accounting procedure and guidelines Jensen Inc. can recover the settlements due to the deceased and repay the debts .

2- No search method used,applied the general awareness.

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