Draper company sold $200,000 of extended warranties in 20x8. the warranty represents a separate performance obligation and covers any repairs needed over the next four years. the warranty takes effect on january 1, 20x9. draper uses a straight‐line approach to recognize warranty revenue. what amounts of warranty revenue and unearned warranty revenue, respectively, should draper report in its december 31, 20x9, income statement and balance sheet?

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?