In 2016, Morton Co

question 169

Multiple Choice

In 2016, Morton Co.sold 100 hot air balloons at $4,000 each.The balloons carry a 5-year warranty for defects.Morton estimates that repair costs will average 4% of the total selling price.The estimated warranty liability at the beginning of the year was $42,000.$11,000 in claims was actually incurred during the year to honor their warranty.What was the balance in the ending estimated warranty liability at the end of the year?

• A) $47,000
• B) $42,000
• C) $37,000
• D) $ 5,000

---

Definitions:

Pupil

The circular opening in the center of the iris of the eye, which regulates the amount of light that enters.

Lens

A transparent optical component that focuses or disperses light rays, used in a variety of devices such as glasses, cameras, and microscopes to enhance vision or capture images.

Opponent-Process Cell

A type of cell in the visual system that is believed to be responsible for processing colors by encoding differences between pairs of colors such as red-green or blue-yellow.

Thalamus

A large, dual-lobed mass of grey matter buried under the cerebral cortex, involved in relaying sensory information and acting as a center for pain perception.