(Warranties-Assurance-Type Cool Sound Ltd. manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale-2% of sales; second year after sale-3% of sales; and third year after sale-4% of sales. Sales and actual warranty expenditures for the first three years of business were: Sales 2021 $ 810,000 2022 1,070,000 2023 1,036,000 Warranty Expenditures $16,500 47,200 83.000 Instructions a. Calculate the amount that Cool Sound should report as warranty expense on its 2023 income statement and as a warranty liability on its December 31, 2023 SF using the assurance-type warranty (expense-based approach). Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. b. Are assurance-type warranties recorded differently in IFS and ASPE? c. Digging Deeper Assume that Cool Sound's warranty expenditures in the first year after sale end up being 4% of sales, which is twice as much as was forecast. How would management account for this change? d. Data Analytics Describe how data analytics could help Cool Sound reduce future uncertainty concerning estimating warranty expenses.