=+PE 11-7B Estimated warranty liability obj. 5 EE 11-7 p. 505 Exercises I-Generation Co. sold 14,000 annual subscriptions of Climber’s World for $60 during December 2010. These new subscribers will receive monthly issues, beginning in January 2011. In addition, the business had taxable income of $400,000 during the first calendar quarter of 2011. The federal tax rate is 40%. A quarterly tax payment will be made on April 7, 2011.