Krypton Foods Distributes Coupons to Consumers Which May Be Presented

Multiple Choice

Krypton Foods distributes coupons to consumers which may be presented, on or before a stated expiry date, to grocery stores for discounts on certain Krypton products. The stores are reimbursed when they send the coupons in to Krypton. In Krypton's experience, only about 50% of these coupons are redeemed. During 2020, Krypton issued two separate series of coupons as follows: Krypton's only journal entries for 2020 recorded debits to Premium Expense, and credits to Cash of $ 268,000. Their December 31, 2020 statement of financial position should include a Estimated Liability for Premiums of

A) $ 0.
B) $ 30,000.
C) $ 62,000.
D) $ 180,000.