General Product Inc. distributed 100 million coupons in 2018. The coupons are redeemable for 30 cents each. General anticipates that 70% of the coupons will be redeemed. The coupons expire on December 31, 2019. There were 45 million coupons redeemed in 2018 and 30 million redeemed in 2019.
- What was General's coupon liability as of December 31, 2018?

Question

Quizplus · Accepted Answer

100 million x $.30 x 70% = $21 million
$21 million - (45 million x $.30) = $7.5 million