Karl is a partner in Lizard Partnership. This year, Karl's share of partnership ordinary income is $20000, and she received a cash distribution of $30000. Karl's tax basis in her partnership interest at the beginning of the year was $50000. Her marginal tax rate is 22 percent. Kari qualifies for the Section 199A deduction without regard to the wage limitation

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?