ABC Company is a dealership that sells motor vehicles at an average price of $20,000 each. In addition to the vehicle's regular warranty of 36,000 miles or three years on repairs, whichever comes first, the company sells interested customers an additional two-year warranty extension. That extended warranty sells for an additional $600 to the cost of the vehicle. How would the company have to record the sale of the extended warranty?

to. As deferred income $300.

b. As income $300.

c. As deferred income $600

d. As income $600.