1. A company sold 345 bikes at $225 each during 2022 . The bikes carry a 3 -year warranty for defects. The following information is available for the Estimated Warranty Liability account. 2021$3,8842022$4,673 Estimated Liabilities for Warranties If actual claims during the year totaled $5,102, the adjusting entry to the warranty expense account on December 31, 2022 would be for what amount? A. $5,891 B. $3,455 C. $5,102 D. $9,775 E. $4,313 2. ABC Company had the following transactions during the year. - On February 1, ABC sold 100 gift certificates for $25 each for cash. At year-end 60% of the gift certificates had been redeemed. - On April 1, land was purchased for $42,000. The land was financed with a 12 month, 7% interest bearing note. - On December 31, ABC accrued salary expense of $18,000. - The company is facing a class-action suit lawsuit in the upcoming year. It is possible, but not probable, that the company will have to pay a settlement of approximately $20,000. Determine total current liabilities relating to the above transactions at year-end December 31. A. $83,705 B. $63,205 C. $61,000 D. $63,705 E. $83,205 3. A machine shop has the opportunity to purchase a new machine for $20,000. After carefully studying projected costs and revenues, the company estimates that the new machine will produce a net cash flow of $2,600 annually and will last for ten years. At the end of ten years the machine will be sold for $500 salvage. Management feels that an interest rate of 6 percent is adequate for his business. Determine the maximum amount the company should pay for the machine. A. $19,136 B. $26,500 C. $19,636 D. $19,415 E. $22,816