Assume that the Chlo Dalcy Companies, Inc., faced the following liability situations at June 30,2021 , the end of the company's fiscal year. Show how Chlo Dalcy would report these liabilities on its balance sheet at June 30, 2021. (Click on the icon to view the situations.) a. Salary expense for the last payroll period of the year was $800,000. Of this amount, employees' withheld income tax totaled $89,000 and FICA taxes were $79,000. These payroll amounts will be paid in early July. (Enter all amounts in whole dollars. If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.) b. The company estimates that its warranty expense for the fiscal year will be 4% of its $450 million in sales. One year ago, at June 30 , 2020 , Accrued Warranty Payable stood at $2 million. Warranty payments were $9 million during the year ended June 30, 2021. (Enter all amounts in whole dollars. If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.) c. The company pays royalties on its purchased trademarks. Royalties for the trademarks are equal to a percentage of Chlo Dalcy's sales. Assume that the company's $450 million in sales for fiscal year 2021 were subject to a royalty rate of 1%. At June 30, 2021, Chlo Dalcy owes two-thirds of the year's royalty, to be paid in July. (Enter all amounts in whole dollars. If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.) d. Long-term debt, outstanding since 2019 , totaled $50 million and is payable in annual installments of $5 million each. The interest rate on the debt is 11%, and the interest is paid each December 31. (Enter all amounts in whole dollars. If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.) e. The company recognizes a contingent liability for additional federal income taxes due to ongoing IRS audits of the company's 2019 and 2020 corporate income tax returns conducted in 2021. As of the date of issuance of the 2021 financial statements, the IRS audits are incomplete. The company's management estimates that it is possible that additional amounts of income taxes will be due pending the eventual outcome of these audits, but is unable to make an estimate of the amounts. However, the amounts are not expected to be material to the company's financial position or results of operations for 2021 . A. The company will revise its 2020 financial statements to include a footnote explaining the IRS audits. The footnote will include information that the audits are incomplete and the amount of additional income tax liability is not expected to be material to the company's financial position. B. The company does not need to disclose the IRS audits since the amounts are not expected to be material to the company's financial position and it is only possible that additional amounts of income taxes will be due. C. The company will revise its 2019 and 2020 financial statements to include a footnote explaining the IRS audits. The footnote will include information that the audits are incomplete and the amount of additional income tax liability is not expected to be material to the company's financial position. D. The company will add a footnote to its 2021 financial statements explaining the IRS audits, the fact that as of the date of issuance of the 2021 financial statements, the audits are incomplete, and the fact that the amount of additional income tax liability is not expected to be material to the company's financial position as of June 30, 2021. a. Salary expense for the last payroll period of the year was $800,000. Of this amount, employees' withheld income tax totaled $89,000 and FICA taxes were $79,000. These payroll amounts will be paid in early July. b. The company estimates that its warranty expense for the fiscal year will be 4% of its $450 million in sales. One year ago, at June 30, 2020, Accrued Warranty Payable stood at $2 million. Warranty payments were $9 million during the year ended June 30, 2021. c. The company pays royalties on its purchased trademarks. Royalties for the trademarks are equal to a percentage of Chlo Dalcy's sales. Assume that the company's $450 million in sales for fiscal year 2021 were subject to a royalty rate of 1\%. At June 30, 2021, Chlo Dalcy owes two-thirds of the year's royalty, to be paid in July. d. Long-term debt, outstanding since 2019 , totaled $50 million and is payable in annual installments of $5 million each. The interest rate on the debt is 11%, and the interest is paid each December 31. e. The company recognizes a contingent liability for additional federal income taxes due to ongoing IRS audits of the company's 2019 and 2020 corporate income tax returns conducted in 2021. As of the date of issuance of the 2021 financial statements, the IRS audits are incomplete. The company's management estimates that it is possible that additional amounts of income taxes will be due pending the eventual outcome of these audits, but is unable to make an estimate of the amounts. However, the amounts are not expected to be material to the company's financial position or results of operations for 2021. Assume that the Chlo Dalcy Companies, Inc., faced the following liability situations at June 30,2021 , the end of the company's fiscal year. Show how Chlo Dalcy would report these liabilities on its balance sheet at June 30, 2021. (Click on the icon to view the situations.) a. Salary expense for the last payroll period of the year was $800,000. Of this amount, employees' withheld income tax totaled $89,000 and FICA taxes were $79,000. These payroll amounts will be paid in early July. (Enter all amounts in whole dollars. If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.) b. The company estimates that its warranty expense for the fiscal year will be 4% of its $450 million in sales. One year ago, at June 30 , 2020 , Accrued Warranty Payable stood at $2 million. Warranty payments were $9 million during the year ended June 30, 2021. (Enter all amounts in whole dollars. If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.) c. The company pays royalties on its purchased trademarks. Royalties for the trademarks are equal to a percentage of Chlo Dalcy's sales. Assume that the company's $450 million in sales for fiscal year 2021 were subject to a royalty rate of 1%. At June 30, 2021, Chlo Dalcy owes two-thirds of the year's royalty, to be paid in July. (Enter all amounts in whole dollars. If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.) d. Long-term debt, outstanding since 2019 , totaled $50 million and is payable in annual installments of $5 million each. The interest rate on the debt is 11%, and the interest is paid each December 31. (Enter all amounts in whole dollars. If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.) e. The company recognizes a contingent liability for additional federal income taxes due to ongoing IRS audits of the company's 2019 and 2020 corporate income tax returns conducted in 2021. As of the date of issuance of the 2021 financial statements, the IRS audits are incomplete. The company's management estimates that it is possible that additional amounts of income taxes will be due pending the eventual outcome of these audits, but is unable to make an estimate of the amounts. However, the amounts are not expected to be material to the company's financial position or results of operations for 2021 . A. The company will revise its 2020 financial statements to include a footnote explaining the IRS audits. The footnote will include information that the audits are incomplete and the amount of additional income tax liability is not expected to be material to the company's financial position. B. The company does not need to disclose the IRS audits since the amounts are not expected to be material to the company's financial position and it is only possible that additional amounts of income taxes will be due. C. The company will revise its 2019 and 2020 financial statements to include a footnote explaining the IRS audits. The footnote will include information that the audits are incomplete and the amount of additional income tax liability is not expected to be material to the company's financial position. D. The company will add a footnote to its 2021 financial statements explaining the IRS audits, the fact that as of the date of issuance of the 2021 financial statements, the audits are incomplete, and the fact that the amount of additional income tax liability is not expected to be material to the company's financial position as of June 30, 2021. a. Salary expense for the last payroll period of the year was $800,000. Of this amount, employees' withheld income tax totaled $89,000 and FICA taxes were $79,000. These payroll amounts will be paid in early July. b. The company estimates that its warranty expense for the fiscal year will be 4% of its $450 million in sales. One year ago, at June 30, 2020, Accrued Warranty Payable stood at $2 million. Warranty payments were $9 million during the year ended June 30, 2021. c. The company pays royalties on its purchased trademarks. Royalties for the trademarks are equal to a percentage of Chlo Dalcy's sales. Assume that the company's $450 million in sales for fiscal year 2021 were subject to a royalty rate of 1\%. At June 30, 2021, Chlo Dalcy owes two-thirds of the year's royalty, to be paid in July. d. Long-term debt, outstanding since 2019 , totaled $50 million and is payable in annual installments of $5 million each. The interest rate on the debt is 11%, and the interest is paid each December 31. e. The company recognizes a contingent liability for additional federal income taxes due to ongoing IRS audits of the company's 2019 and 2020 corporate income tax returns conducted in 2021. As of the date of issuance of the 2021 financial statements, the IRS audits are incomplete. The company's management estimates that it is possible that additional amounts of income taxes will be due pending the eventual outcome of these audits, but is unable to make an estimate of the amounts. However, the amounts are not expected to be material to the company's financial position or results of operations for 2021