The Ace Company is affected by the following contingencies at the end of 2015: 1) Ace's legal counsel has concluded that it is probable that the company will be required to pay damages of $400,000 in a lawsuit. 2) Expropriation of Ace's foreign assets, valued at $3,000,000, appears reasonably possible. 3) Ace's controller estimates that $30,000 of the company's receivables are likely to be uncollectible, and will require Ace to honor the amounts. 4) It appears remotely possible that a major customer will be unable to repay a note to Ace for $100,000. What total amount should Ace accrue for loss contingencies in 2015? A. $430,000 B. $3,400,000 C. $3,430,000 D. $530,000
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