Computer Inc

question 43

Multiple Choice

Computer Inc. sells equipment with a 3-year warranty. Prior experience indicates that costs for warranty repairs average 3% in the first year, 2% in the second year and 1% in the third year. In 2013, Computer had sales of $800,000. It paid $20,000 for materials and labour to make warranty-related repairs in 2013. What amount will be recorded as warranty expense in 2013?

• A)$16,000
• B)$24,000
• C)$28,000
• D)$48,000

---

Definitions:

Semantic Encoding

The process of encoding sensory input that has particular meaning or can be applied to a context.

Monogamous Relationships

Romantic or sexual relationships that are exclusively between two individuals at a time.

Sex Lives

The aspects of an individual's or couple's sexual activities, preferences, and relationships.

Farsightedness

A common vision condition, also known as hyperopia, where distant objects may be seen more clearly than objects that are near.