1. Which of the following situations may give rise to uneamed revenue? a Providing trade credit to customers b Selling inventory c Selling magazine subscriptions d. Providing manufacturer warranties 2. To record an environmental liability, the cost associated with the liability is a. expensed b. included in the carrying amount of the related long-lived asset cincluded in a separate account d. None of these answer choices are correct 3. Which of the following is an example of contingent assets a Prepaid insurance b. Donations c Gifts d. B& C 4. A company buys an oil rig (oil facility) for $1.000,000 on January 1, 2015. The life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $200,000 (present value at 10% is $77,110). 10 % is an appropriate interest rate for this company What expense should be recorded for 2015 as a result of these events? a. Depreciation expense of $120,000 b. Depreciation expense of $100,000 and interest expense of $7,711 c. Depreciation expense of $100,000 and interest expense of $20,000 d. Depreciation expense of $107,711 and interest expense of $7,711 5. Hatcher Corporation sold 10,500 dishwashers for 1,100 each during 2015. The dishwashers are under warranty for one year following the sale. Maintenance on the dishwashers during the warranty period averages 90 each. Actual warranty costs incurred during 2015 for units sold that year were 296,000. The statement of financial position at year end will report a related liability of. a. $296,000. b. $649,000 c. $945,000 d. $1,030,900