Question: On January 2 , 2 0 2 5 , Crane Company sells production equipment to Windsor Inc. for $ 4 6 , 0 0 0

On January 2,2025, Crane Company sells production equipment to Windsor Inc. for $46,000. Crane includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2,2025. During 2025, Crane incurs costs related to warranties of $880. At December 31,2025, Crane estimates that $650 of warranty costs will be incurred in the second year of the warranty.

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