7. If a company estimates their warranty liability by discounting expected future cash flows, what are some of the disclosure requirements? A) The company should note that the liability represents a Level 3 on the FASB's fair value hierarchy. because the inputs used to calculate the value is unobservable to the statement user. B) The company should note that the liability represents a Level 2 on the FASB's fair value hierarchy. because other companies use the same approach with simllar liabilities. C) There are no disclosure requirements other than the recording of the amount of liability and notice that the value represents the present value of expected future cash flows. D) The company should provide more disclosure about assumptions, estimates, and methods used in calculating the amount. E) Both A and D are correct. F) Both B and D are correct. 7. If a company estimates their warranty liability by discounting expected future cash flows, what are some of the disclosure requirements? A) The company should note that the liability represents a Level 3 on the FASB's fair value hierarchy. because the inputs used to calculate the value is unobservable to the statement user. B) The company should note that the liability represents a Level 2 on the FASB's fair value hierarchy. because other companies use the same approach with simllar liabilities. C) There are no disclosure requirements other than the recording of the amount of liability and notice that the value represents the present value of expected future cash flows. D) The company should provide more disclosure about assumptions, estimates, and methods used in calculating the amount. E) Both A and D are correct. F) Both B and D are correct