The following are three independent situations. 1. Cullumber Stamp Company records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Cullumber's past experience indicates that only 60% of the stamps sold to licensees will be redeemed. Cullumber's liability for stamp redemptions was $6,070,000 at December 31, 2024. Additional information for 2025 is as follows: If all the stamps sold in 2025 were presented for redemption in 2026 , the redemption cost would be $8,870,000. What amount should Cullumber report as a liability for stamp redemptions at December 31, 2025? Liability for stamp redemptions at December 31, 2025$ 2. In packages of its products, Crane Corp. includes coupons that may be presented at retail stores to obtain discounts on other Crane products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Crane honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Crane estimates that 30% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Crane during 2025 is as follows: products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Crane honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Crane estimates that 30% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Crane during 2025 is as follows: What amount should Crane report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons $ 3. Blossom Company sold 1,040,000 boxes of cereal under a new sales promotional program. Each box contains one coupon, which submitted with $1.00, entitles the customer to a stuffed animal. Blossom pays $4.00 per stuffed animal and $1.10 for handling and shipping. Blossom estimates that 40% of the coupons will be redeemed, even though only 109,400 coupons had been processed during 2025. What amount should Blossom report as a liability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons at December 31, 2025 $