Landfall Navigation Began Operations in 2017 and Provides a One

question 81

Multiple Choice

Landfall Navigation began operations in 2017 and provides a one year warranty on the products it sells. They estimate that 20000 of the 400000 units sold in 2017 will be returned for repairs and that these repairs will cost $8 per unit. The cost of repairing 16000 units presented for service in 2017 was $128000. Landfall should report

• A) warranty expense of $32000 for 2017.
• B) warranty expense of $160000 for 2017.
• C) warranty liability of $160000 on December 31 2017.
• D) no warranty obligation on December 31 2017 since this is only a contingent liability.

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Definitions:

Calories

Units of energy used to measure the energy content of foods and beverages, crucial for human survival and health.

Circumstances

The conditions, facts, or events surrounding and affecting a situation, often influencing decisions and outcomes.

Absolute Deprivation

An objective measure of poverty, defined by the inability to meet minimal standards for food, shelter, clothing, or health care.

Medical Care

The maintenance or improvement of health through the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in people.