Use the following information to answer the next___3__ questions. On January 1, 2019, Nance Company...
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Use the following information to answer the next___3__ questions. On January 1, 2019, Nance Company sells 500 copiers. Each copier comes with a 3-year warranty. The company estimates the warranty costs at $150 per machine during the warranty period. During 2019, Nance paid actual warranty costs of $18,000. At year-end some of the machines are still under warranty. 5. The warranty expense for these machines for 2019 is a. $75,000 b. $25,000. c. $57,000. d. $18,000 6. The warranty liability to be shown on the 2019 year-end balance sheet is a. $75,000 b. $25,000 c. $57,000. d. $18,000 7. Nance estimates that the year-end warranty liability will be satisfied ratably over the remaining 2 years. How much of the December 31, 2019 liability balance is considered current? a. $12,500 b. $25,000 c. $9,000 d. $28,500
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