Situation 3: Baylor Corp. sold 686,000 boxes of pie mix under a new sales promotion program. Each box contains one coupon that entitles the customer to a baking pan when the coupon is submitted with an additional $4.75 from the customer. Baylor pays $5 per pan and $1.25 for shipping and handling. Baylor estimates that 60% of the coupons will be redeemed even though only 102,900 coupons had been processed during 2020. Each box of pie mix is sold for $4.50, and Baylor estimates that $1 of the sale price relates to the baking pan to be awarded. Baylor follows IFRS and accounts for its promotional programs in accordance with the revenue approach and IFRS 15. (a) What amount related to the promotional program should Baylor report as a liability at December 31, 2020? Liability for the promotional program $ 1929375 (b) What amount of premium expense will Baylor report on its 2020 income statement as a result of the promotional program? Premium Expense $ 643125