The balance of the Estimated Warranty Liability account was $28,000 on January 1, 2019, and $36,300 on December 31, 2019. Based on an analysis of warranty claims during the past several years, this years warranty provision was established at 2% of sales, and sales during the year were $4,200,000.

What amount of warranty expense will appear on the income statement for the year ended December 31, 2019?

Multiple Choice

• $75,700

• $84,000

• $92,300

• $120,300

$367,000 $405,000 $515,000 $625,000

The present value of $6,000 to be received every year for 9 years, at 10%, is:

Multiple Choice

• $24,546.00

• $14,147.60

• $34,554.00

• $54,000.00