Multiple Choice Question 117

Bramble manufactures high-end whole home electronic systems. The company provides a one-year warranty for all products sold. The company estimates that the warranty cost is $310 per unit sold and reported a liability for estimated warranty costs $10.3 million at the beginning of this year. If during the current year, the company sold 60100 units for a total of $325 million and paid warranty claims of $11980000 on current and prior year sales, what amount of liability would the company report on its balance sheet at the end of the current year?

A. $6651000.

B.	$16951000.

C.	$18631000.

D.

$4284333.