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Excom manufactures high-end whole home electronic systems. The company provides a two-year warranty for all products sold. The company estimates that the warranty costs related to dollar sales are 2% for the first year of warranty and 5% for the second year of warranty. Sales and actual warranty expenditures for 2018 and 2019 are presented below: 2018 2019 Sales $600,000 $800,000 Actual Warranty Exp 30,000 40,000 What is the estimated warranty liability at the end of 2019? $16,000 $28.000 $38,000 $58,000 On December 31, 2019, Irey Co. has $3,000,000 of short-term notes payable due on February 14, 2020. On February 8, 2020, Irey borrowed $1,200,000 (long-term loan) from County Bank and used $1,000,000 additional cash to liquidate $2,200,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is 3,000,000 1,800,000 1,200,000 800,000 Harrel Company acquired a patent on an oil extraction technique on January 1, 2018 for $7,500,000. It was expected to have a 10 year life and no residual value. Harrel uses straight-line amortization for patents. On December 31, 2020, the expected future cash flows expected from the patent were expected to be $800,000 per year for the next eight years. The present value of these cash flows, discounted at Harrel's market interest rate, is $4,200,000. At what amount should the patent be carried on the December 31, 2020 balance sheet? 7,500,000 5,250,000 6,400,000 4,200,000