Question $34$:

In December $2019,$ Krunch Co$.$ began including one coupon in each package of crackers that is sold and offered a color pen in exchange for $$1$ and five coupons.

The pens cost Krunch $$3$ each and the coupons are valid for three years from the year of sale.

Eventually, $60\%$ of the coupons were expected to be redeemed.

During December $2019,$ Krunch sold $2,200,000$ packages of crackers, and $100,000$ coupons were redeemed.

How much should Krunch report as estimated liability for coupons in its December $31,2019$ balance sheet, and how should the amount be classified?

EXAMPLE: $[$$XX; Current$/$Non$-$current$]$

a$.$ $$488,000$; Current

b$.$ $$528,000$; Current

c$.$ $$504,000$; Non$-$Current

d$.$ $$244,000$; Current

e$.$ None of the above