situations. E13-15 (LO3) GROUPWORK (Premiums) The following are three independent y records stamp service revenue and provides for the cost of redemptions in the year stamps perience indicates that only 80% of the stamps sold to licensees will be 1. Hairston Stamp Compan are sold to licensees Hairston's past ex redeemed. Hairston's liability for stamp redemptions was $13,000,000 at December 31, 2016. Additional information for 2017 is as follows. Stamp service revenue from stamps sold to licensees $9,500,000 Cost of redemptions (stamps sold prior to 1/1/17) 6,000,000 If all the stamps sold in 2017 were presented for redemption in 2018, the redemption cost would be $5,200,000. What amount should Hairston report as a liability for stamp redemptions at December 31, 2017? 2. In packages of its products, Burnitz Inc. includes coupons that may be presented at retail stores to obtain discounts on other Burnitz products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Burnitz honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date Burnitz estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Burnitz during 2017 is as follows. Consumer expiration date Total face amount of coupons issued Total payments to retailers as of 12/31/17 12/31/17 $800,000 330,000 What amount should Burnitz report as a liability for unredeemed coupons at December 31, 2017? 3. Roland Company sold 700,000 boxes of pie mix under a new sales promotional program. Each box contains one pon, which submitted with $4.00, entitles the customer to a baking pan. Roland pays $6.00 per pan and $0.50f handling and shipping. Roland estimates that 70% of the coupons will be redeemed, even though only 250,000 coupons had been processed during 2017. What amount should Roland report as a liability for unredeemed at December 31, 2017? coupons