In 2020, Hydrogen Corp

question 91

Multiple Choice

In 2020, Hydrogen Corp. began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: Hydrogen uses the expense approach to account for warranties. What is the estimated warranty liability at the end of 2021?

• A) $ 73,500
• B) $ 43,500
• C) $ 28,500
• D) $ 12,000

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Definitions:

Minor's Parents

The legal guardians or biological parents of an individual who is under the age of legal adulthood.

Intervention Strategy

A plan or method designed to intervene in a situation in order to change the outcome or influence the course of events.

Task-Centered

Task-centered refers to an approach or methodology that focuses primarily on the completion of specific tasks or objectives, often in a work or therapeutic setting.

Reactance Theory

A psychological theory suggesting that people act against threats to their freedoms or choices to maintain a sense of control.