Senger manufactures high-end whole home electronic systems. The company provides a one-year warranty for products sold. The company estimates that the warranty cost is $300 per unit sold and reported a liability for estimated warranty costs $10.4 million at the beginning of this year. If during the current year, the company sold 60,000 units for a total of $324 million and paid warranty claims of $12,000,000 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. $3, 733, 333. b. $6,000,000. c. $16, 400,000. d. $18,000,000. A company offers a cash rebate of $1 on each $4 package of light bulbs sold during 2018. Historically, 10% of customers mail in the rebate form. During 2018, 3, 750,000 packages of light bulbs are sold, and 200,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2018 financial statements dated December 31? a. $375,000; $375,000 b. $375,000; $175,000 c. $175,000, $175,000 d. $200,000; $175,000 A company buys an oil rig for $3,000,000 on January 1, 2018. The life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $600,000 (present value at 10% is $231, 330). 10% is an appropriate interest rate for this company. What expense should be recorded for 2018 as a result of these events? a. Depreciation expense of $360,000 b. Depreciation expense of $300,000 and interest expense of $23, 133 c. Depreciation expense of $300,000 and interest expense of $60,000 d. Depreciation expense of $323, 133 and interest expense of $23, 133 Use the following information for items 19 & 20. Muggs Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Muggs $4 each. Muggs estimates that 45 percent of the coupons will be redeemed. Data for 2017 and 2018 are as follows: The premium expense for 2017 is a. $250,000. b. $60,000. c, $100,000. d. $112, 500. The premium liability at December 31, 2017 is a. $50,000. b. $72,000. c. $60,000. d. $52, 500