How much warranty work was performed

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Questions -

Q1. Which of the following is an advantage of issuing bonds versus issuing stock?

The dividend expense associated with issuing stock is tax deductible

The voting rights associated with issuing bonds dilutes the ownership percentage of existing owners

There are no required, regular payments associated with issuing bonds

The interest expense associated with issuing bonds is tax deductible

Q2. The beginning warranty liability was $25,000. Sales of $5,000,000 were made, and 1% of sales is the estimated warranty cost. The ending balance of the warranty liability was $35,000 (credit). How much warranty work was performed?

$40,000

None of these

$60,000

$50,000

$90,000

Reference no: EM133027754

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