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The following are three independent situations. 1. Sarasota Rewards lnc. provides rewards services to licensees. Sarasota records service revenue related to rewards igranted as reward

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The following are three independent situations. 1. Sarasota Rewards lnc. provides rewards services to licensees. Sarasota records service revenue related to rewards igranted as reward vouchers, which can be redeemed at a variety of retailers) and recognizes the cost of redemptions in the year vouchers are sold to licensees. Sarasota's past experience indicates that only 80% of the vouchers sold to licensees will be redeemed. Sarasota's liability for stamp redemptions was $13,481,800 at December 31,2024 . Additional information for 2025 is as follows. If all the vouchers sold in 2025 were presented for redemption in 2026, the redemption cost would be $5,409,200. What amount should Sarasota report as a liability for voucher redemptions at December 31, 2025? Liability for stamp redemptions at December 31,2025 2. In packages of its products, Ivanhoe Inc. Includes coupons that may be presented at retail stores to obtain discounts on other Ivanhoe products. Retailers are reimbursed for the face amount of coupons redeemed plus 10% of that amount for handling costs. Ivanhoe honors requests for coupon redemption by retailers up to 3 months after the consumer expiration date. Ivanhoe estimates that 60% of all coupons issued will ultimately be redeemed. Information relating to coupons issued by Ivanhoe during 2025 is as follows. What amount should Ivanhoe report as a fiability for unredeemed coupons at December 31, 2025? Liability for unredeemed coupons 5 3. Shamrock Company sold 718,300 boxes of pie mix under a new sales promotional program. Each box contains one coupon, which submitted with $4.60, entities the customer to a baking pan. Shamrock pays $6.60 per pan and $1.10 for handling and shipping. Shamrock estimates that 70% of the coupons will be redeemed, even though only 260,100 coupons had been processed during 2025 . What amount should Shamrock report as a liability for unredeemed coupons at December 31,2025 ? Liability for unredeemed coupons at December 31, 2025 5

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