Problem 3: Warranty Claims Digital Associates sells computers. They offer a standard one year warranty on their products. Selected financial information for Digital Associates has been included below: Current year Balance Sheet: (as of 12/31) Accrued Warranty $20,000 Income Statement for current year Revenue $420,000 Warranty Expense $12,600 Required: Prior year $15,000 a. b. What was the dollar amount of warranty claims that were settled (paid) in the current year? On December 31 of this year, Digital Associates learned they had a problem with one of their products they had previously sold. They determined that the fixing this problem would cost approximately $4,500 over the next two years. How would this additional information impact the income statement for the current year?