Answer:
$2,040,000
Explanation:
Calculation for the amount of warranty costs paid during 2021
Beginning quality-assurance warranty liability $350,000
Add: Warranty expense $2,000,000
(4%×$50 million)
Less: Ending quality-assurance warranty liability ($310,000)
Warranty cost $2,040,000
Therefore the amount of warranty costs paid during 2021 will be $2,040,000
