Motorola is a world leader in the development of cellular phone technology. During the year, the company becomes aware of potential costs due to (1) a product defect that is reasonably possible and is reasonably estimable, (2) a safety hazard that is probable and cannot be reasonably estimated, and (3) a new product warranty that is probable and can be reasonably estimated. Which of these potential costs, if any, should Motorola record?

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Motorola is a world leader in the development of cellular phone technology. During the year, the company becomes aware of potential costs due to (1) a product defect that is reasonably possible and is reasonably estimable, (2) a safety hazard that is probable and cannot be reasonably estimated, and (3) a new product warranty that is probable and can be reasonably estimated. Which of these potential costs, if any, should Motorola record?

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