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TechVision Co. sells luxury home entertainment systems with a one-year warranty....

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TechVision Co. sells luxury home entertainment systems with a one-year warranty. The company estimates warranty cost of €250 per unit sold. It reported a beginning warranty liability of €8,000,000.

During the year, it sold

30,000 units and paid €6,500,000 in warranty claims.

What is the estimated warranty liability at the end of the year?

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