Worley truck rental uses the group depreciation method for its fleet of trucks. when it retires one of its trucks and receives cash from a salvage company, the carrying value of property, plant, and equipment will be decreased by thea) original cost of the truck less the cash proceeds. b) cash proceeds received and original cost of the truck. c) original cost of the truck. d) cash proceeds received.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?