016 1. Albert Corp. introduced a new machine on January 1, 2016. The machine carried a two-year assurance-type warranty against defects. The estimated warranty costs related to dollar sales were 3% in the year of sale and 5% in the year after sale. Additional information follows: Year 2016 2017 Sales $40,000 60,000 Actual Warranty Expenditures $ 600 2,200 Total 86 60,000 x 86 = 4,800 take latest year of Sales combine to get onsver. If the company uses the GAAP approach of accruing warranty expense (and the related liability) in the year of the sale, what amount relating to warranty expense should be reflected on the December 31, 2017 income statement? 60,000 x 33= 60,00056 = C a. $2,200 A C Why are we ignoring Warranty exp. 480 Est. Warr. li b. $7,400 the 2016 year entirely? C C. $4,800 d. $5,200 C