ACE COMPUTER CORPORATION SELLS COMPUTERS WITH A ONE YEAR WARRANTY ON PARTS AND LABOR. THE ACCOUNTING YEAR ENDS JUNE 30. FOR THE FISCAL YEAR 2019, THE FINANCIAL STATEMENTS SHOW AN ACCRUED LIABILITY OF 10,000 FOR ESTIMATED WARRANTY EXPENSE ON COMPUTERS SOLD DURING THE YEAR. DURING THE 2019 FISCAL YEAR , ACE PAID 6000 FOR LABOR AND MATERIALS TO REPAIR COMPUTERS UNDER WARRANTY. SOME WERE SOLD IN 2018 AND SOME IN 2019. HOW MUCH CAN ACE DEDUCT ON ITS 2019 TAX RETURN FOR WARRANTIES

0

3000

6000

10000