The following disclosures were provided by Siemens AG in its 2014 annual report: Product-related expenses

Provisions for estimated costs related to product warranties are recorded in line item Cost of sales at the time the related sale is recognized, and are established on an individual basis, except for the standard product business. The estimates reflect historic experience of warranty costs, as well as information regarding product failure experienced during construction, installation or testing of products. In the case of new products, expert opinions and industry data are also taken into consideration in estimating product warranty provisions.

Provisions
In Millions of €2014 2013
Beginning Balance 3,350 3,405
Additions 1,778 1,544
Usage (771) (828)
Reversals (657) (683)
Translation differences and other 23 (88)
Ending Balance 3,721 3,350

The Provision that Siemens reports is an estimated warranty liability. What would constitute "additions" to the provision?

a. Prepare a journal entry to record this addition.
b. What constitutes "usage" of the provision? Besides the provision, what other accounts are likely to be affected by usage? Prepare a journal entry to record usage of €771 million.
c. "Reversals" are corrections of previous estimates of warranty obligations. Why would it be useful to report reversals separately from additions?
d. Siemens reported sales revenue of €71,920 million in 2014 and €73,445 in 2013. Calculate the ratio of warranty expense to sales for each year.

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.