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Question - Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2012, the company sold 675,000 boxes of Frosted Flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. If the bowls cost Palmer Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012?
A) $138,000
B) $50,000
C) $75,000
D) $270,000
Assume the balance in retained earnings is $ 100,000. Prepare the stockholders' equity section of Beta's balance sheet
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