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5. Denson Machinery Company begins production of a new machine in July 2017 and sells 100 of these machines for $5,000 cash by year-end. Each
5. Denson Machinery Company begins production of a new machine in July 2017 and sells 100 of these machines for $5,000 cash by year-end. Each machine is under warranty for one year. Denson estimates, based on past experience with similar machines, that the warranty cost will average $200 per unit. Further. as a result of parts replacements and services performed in compliance with machinery warranties, it incurs $4,000 in warranty costs in 2017 and $16,000 in 2018. The warranty liabilities on 12/31/2017 should be? (10 points)
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