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need help ASAP Indefinite-life intamples Goodwill Finite-life intangibles Question 10 6 pts Expedition Corp offers a one-year warranty against defects on the products it sells.
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Indefinite-life intamples Goodwill Finite-life intangibles Question 10 6 pts Expedition Corp offers a one-year warranty against defects on the products it sells. In 2024, the company sold $5,400,000 of its most popular product and Expedition also sold a total of $90,000 in extended service-type warranties on these products. The extended warranties are expected to be utilized 30% in 2025, 25% in 2026, and 45% in 2027 Based on their historical experience with this product, warranty costs are expected to be approximately 3,0% of sales. During 2024, the assurance-type warranty on all prior years' sales expired (since it lasts one year) and the company made repairs on items sold during 2024 of $85,000. The remaining repairs are expected to occur in 2025. The costs of servicing the extended warranties is expected to be $14,000 across all three years. What is the effect on Expedition's income before tax of the assurance-type warranties in 2024? (Enter increases in income as a positive number and decreases as a negative number.) $ What is the effect on Expedition's income before tax of the service-type warranties expected to be in 2025? $ Step by Step Solution
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