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The following is available for Bonsers warranty liability , before year-end adjustment. Beginning warranty liability 800,000 Warranty expense 1,100,000 Warranty claims paid 1,050,000 Ending warranty
The following is available for Bonsers warranty liability, before year-end adjustment.
Beginning warranty liability | 800,000 |
Warranty expense | 1,100,000 |
Warranty claims paid | 1,050,000 |
Ending warranty liability, before adjustment | 850,000 |
Based upon a year-end analysis by the warranty claims department, the ending balance in the warranty liability should be $925,000.
What amount should appear on the annual income statement for warranty expense?
Group of answer choices
$1,175,000
$1,100,000
$1,025,000
$925,000
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