In the following scenarios decide whether you should classify the item as an asset or a liability.

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(a) Your taxi business, Parker Cars Ltd, provides a warranty to all contract customers that their chauffeur will arrive on time. (b) Parker Cars Ltd has acquired a licence that cost 25,000 that allows you to operate your business close to the two main London airports. This will save you 5,000 in motoring costs over the next 4 years. (c) Parker Cars Ltd has paid Autoshop Ltd 5,000 towards setting up a workshop that will give priority to any maintenance or repairs needed by your vehicles. Asset Liability 0