14.6. a. Dill Computer warranties their $3,000 laptops for 2 years. Typical repair costs for units returned (labor and parts): $100/unit. Usually, only 3% of units sold need repair in the first year after sale, and 4% in year 2. Dill also sells an extended warranty, offering 3 years of additional protection, for $75; usually, only 15% of units sold in a given year need repairs within the 3-year period that begins 2 years after the sale. In year 2kC, Dill Computer sells 1200 laptops. They also sell 500 extended warranties. a. Provide the entries to accrue warranty expense for the usual 2-year period and b. defer revenue using the "sales" method for the extended warranties. c. Is Dill "making money" on their extended warranty sales? If so, how much? [check figures: b. deferred warranty revenue $37,500.] 14.7. Shaw Co. provides a 3-year warranty on any small appliance that it manufactures. In the past, warranty claims have been made on 2% of all appliances sold and have cost Shaw an average of $10 per claim to repair. During years D and E, the following transactions and events occur: Appliance sales Warranty costs incurred Year D 10k units $1800 Year E 12k units $2200 On 1/1/year D, Estimated Warranty Liability was $4000. Assuming Shaw uses the usual accrual method, provide the following amounts: a. Year D warranty expense. b. Year E warranty expense. c. 12/31/D balance in Estimated Warranty Liability. d. 12/31/E balance in Estimated Warranty Liability. 14.8. a. What is the future value of $8k at the end of 5 periods at 8% interest? [11754.62] b. What is the present value of $8k to be received in 7 periods, at 11%? [3853.27] c. What is the future value of 15 payments of $8k each, to be received at the end of each period, at 10%? [254180] d. What is the present value of payments of $8k each, if each payment is to be received at the end of each of 20 periods, at 5%? [99698]