The Clarion Company provides a one-year warranty on all merchandise it sells. In Year 1, the company recorded sales of $500,000. It estimated that the warranty costs on these sales would amount to $2,000. In July, Year 2, Clarion paid $250 to satisfy a warranty claim. Indicate whether each of the following statements is true or false. a) Clarion's recognition of the warranty obligation at the end of Year 1 reduced total assets and total equity. b) Clarion's recognition of the warranty obligation at the end of Year 1 increased Clarion's total liabilities. c) The July, Year 2 transaction reduced total assets and net income for Year 2. d) The July, Year 2 transaction reduced Clarion's total liabilities. e) The recognition of the warranty obligation at the end of

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.