The Following Information Is Available for Kessler Company After Its

question 49

Multiple Choice

The following information is available for Kessler Company after its first year of operations: Kessler estimates its annual warranty expense as a percentage of sales. The amount charged to warranty expense on its books was $85,000. Assuming a 40% income tax rate, what amount was actually paid this year for warranty claims?

• A) $95,000
• B) $100,000
• C) $85,000
• D) $75,000

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Definitions:

Immediate Instructions

Immediate instructions are commands executed directly and instantly within a control program, often affecting control logic or operations without delay.