make six equal payments, one year apart, with the first payment due immediately. The payments a. 5166.651. b. $135,252. $203,351. d. $191,852. 16. Orange Co. can estimate the amount of loss that will occur if a foreign govemment expropriates some of the company's assets in that country. If expropriation is reasonably possible, a loss contingency should be: e. Disclosed but not accrued. g. Accrued as a liability but wisclosed and accrued as a liabily. g. Accrued as a liability but with no additional disclosure necessary. 17. During 2016, Deluxe Leather Goods sold 800,000 reversible belts under a new sales promotional program. Each belt carried one coupon, which entitles the customer to a $5.00 cash rebate. Deluxe estimates that 70% of the coupons will be redeemed, even though only 350,000 liability for unredeemed rebates of a. $560,000. b. $1,050,000. c. $1,225,000. d. $1,750,000. 18. Carpenter Inc. had a balance of $80,000 in its quality-assurance warranty liability account of December 31, 2015. In 2016, Carpenter's warranty expenditures were $445,000. Its warranty expense is calculated as 1% of sales. Sales in 2016 were $40 million. What was the balance in the warranty liability account as of December 31, 2016? a. $35,000. b. $425,000. c. $125,000. d. $480,000. 19. When bonds are sold at a premium and the effective interest method is used, at each subsequent interest payment date, the cash paid is: a. Less than the interest expense. b. Equal to the interest expense. c. Greater than the interest expense. d. More than if the bonds had been sold at a discount