4. During December of 2021, KC Brown sold a new product and provided a two-year warranty for its new product. It has estimated that no warranty costs will be incurred in the first year of the warranty period but warranty costs incurred at the end of the second year may be as follows: 30% probability $10,000 10% probability $20,000 60% probability $15,000 Required: Compute the amount of warranty expense the company will report for 2021 using the expected cash flow approach. Interest rates are 3%. Show work when needed. (5 points) b. Now assume: instead of using the expected cash flow approach, it reported $15,000 of warranty expense for 2021. When the products were repaired in 2023 actual costs were $18,000. How should the company report the additional $3,000? (2 points) O Jobs All BIOAchat CAT