Answer:
Current liability of $70,000
Long-term liability of $140,000
Explanation:
Based on the information given we were told that the corporation had Estimated total warranty cost which was relating to sales for the end of the year in 2017 which was the amount of $210,000 in which (1/3) One-third of the estimated costs are to be incurred during the year 2018 while (2/3) two-thirds is expected to be incurred during the year 2019 this means that the amount as well as the classification of the estimated warranty cost on the balance sheet at 12/31/2017 will be:
Current liability of $70,000
(1/3×$210,000)
Long-term liability of $140,000
(2/3×$210,000)
