?X Co sells goods with a one year warranty and had a provision for warranty claims of $64,000 at 31 December 20X0. During
the year ended 31 December 20X1, $25,000 in claims were paid to customers. On 31 December 20X1, X Co estimated that
the following claims will be paid in the following year:
Scenario????????????????????????????????????????????Probability?????????????????Anticipated cost
Worst case???????????????????????????????????????? ?5%????????????????????????????????? $150,000
Best case?????????????????????????????????????????? ?20%????????????????????????????????$25,000
Most likely????????????????????????????????????????? ?75%????????????????????????????????$60,00
?What amount should X Co record in the statement of profit or loss for the year ended 31 December 20X1 in respect of the
provision?