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On January 1 , 2 0 1 , ABC, Inc. sold a $ 4 8 0 snow blower with a $ 1 2 0

 On January 1,20×1,ABC, Inc. sold a $480 snow blower with a $120 extended warranty. The warranty covers three years of repairs. Assume the costs are not incurred evenly over the warranty, How much warranty revenue would ABC recognize in 20×1 if based on past experience, only 10% of costs are incurred on the first year? Calculate.

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