申論題

4. On December 31, 2018, DDD Company sells equipment to TTT In(C)for $125,000. DDD includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2018. DDD estimates the prices to be $122,000 for the equipment and $3,000 for the cost of the warranty. Instructions

(b) Repeat the requirements for (a), assuming that in addition to the assurance warranty, Dieker sold an extended warranty (service type warranty) for an additional 2 years (2020–2021) for $2,000.