The current (commonly used) accounting treatment for premiums and coupons requires that the costs should be recorded

Fantastic news! We've Found the answer you've been seeking!

Question:

The current (commonly used) accounting treatment for premiums and coupons requires that the costs should

be recorded at the maximum possible redemption cost in the year of the related sales.
be recorded at the total estimated redemption cost in the year of the related sales.
be recorded in the year(s) that the redemption is expected to occur.
not be recorded at all.