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18. Lake Co, receives nonrefundable advance payments with special onders for containers constructeds customer specifications. Related information for 2018 is as follows (S in millions)

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18. Lake Co, receives nonrefundable advance payments with special onders for containers constructeds customer specifications. Related information for 2018 is as follows (S in millions) Customer advances belance, Dec. 31,2017 Advances received with 2018 orders Advances applicable to onders shipped in 2018 Advances from oeders canceled in 2018 S 110 195 180 reprt asaarsent liabilty advances from customers i, its Ds. 31, 2018, blace A) 5125 million B) So C) 5170 million D) 580 million. 19. In May of 2018,Raymond Financial Services became involved in a penalty dispule with the EPA A December 31, 2018, the environmennal attorney for Raymond indicatod that an unaorable outcome to the dispute was peobable. The additional penalties were estimated to be 5770,000 but could he as high as t,170,000. After the year-end, but betone the 2018 financial statements wene isseed, Raymond accepiod a EPA setilemest offer of $900,000 Raymond should have repored an accrued liabilny on its December 31 2018, balance sheet of B) S1,170,000 )5770000. D) $900,000 20 Gain contingencies usally are rocognized in a compamy's incone sttement when A) The gain is reasonubly ponsible and the amount can be reasonable estimated C) The amouest can be reasonably estimated D) Realined. 21. Carpenter l, had a balance of 580,000 in its quality-assurance waranty liahility account as of December 312017. In 2018, Carpenter's warranty expenitures were S445,000. Its warranty expense is calculated as 1% of sales. Sales in 2018 wene $40 million. What was the balance in the warmanty liability account as of December 31, 2018 A) $35,000 B) 5480,000. C) S125,000 D) $425,000. 22. Zero-coupon bonds A) Result in acro intcrest revenue for the investor B) Are reported as shareholders' eqguity by the issaer C) Offer a return in the foem of a deep discount off the face value D) Result in zero intcrest expense for the issuer

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