Situation 1: Marigold Stamp Corporation records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. The stamps can be collected and then redeemed for discounts on future purchases from Marigold as an incentive for repeat business. Marigold's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Marigold's liability for stamp redemptions was $11,960,000 at December 31, 2019. The cost of redemptions for stamps sold prior to January 1, 2020 was $5,520,000. If all the stamps sold in 2020 were presented for redemption in 2021, the redemption cost would be $4,784,000. What amount should Marigold report as a liability for stamp redemptions at December 31, 2020? Liability for stamp redemptions $ ta Situation 2: In packages of its products, ITSS Inc. includes coupons that may be presented at retail stores to obtain discounts on other ITSS products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. ITSS honours requests for coupon redemption by retailers up to three months after the consumer expiration date printed on the coupon. ITSS estimates that 60% of all coupons issued will eventually be redeemed. Information relating to coupons issued by ITSS during 2020 (the first year of the promotion) is as follows: Consumer expiration date 12/31/20 Total face amount of coupons issued $736,000 Total payments to retailers as at 12/31/20 $303,600 (a) What amount should ITSS report as a liability for unredeemed coupons at December 31, 2020? Liability for unredeemed coupons $ (b) What amount of premium expense should ITSS report on its 2020 income statement? Premium expense $