In December Year 1. Lucas Corporation sold merchandise for $10,000 cash Lucas estimated that the warranty ortion relating to this sale is $700. On February 12. Year 2, Lucas peld cash of $550 to settle a related warranty claim by his customer Which of the following summarizes the effect of the payment of cash to settle the warranty colm in Year 2 on the financial statements? Balance Sheet Income statement Stockholders Asset - Liabilities Equity Revenue Expense Het Income statement of (430) (550) (120) n/a 120 (120) (430) (550) (550) n/a n/a n/a n/a (550) (550) (550) n/a n/a 550 (550) (550) d. (550) 550 n/a n/a (550) (550) b. (550 0