General Product Inc.'s coupon liability as of December 31, 2021, is $24 million.
<h3>What is coupon liability?</h3>
Coupon liability is a contingent liability arising from coupon redemption obligations.
As a potential future liability, only the amount that can be reasonably estimated should be recognized.
<h3>Data and Calculations:</h3>
Distributed coupons = 150 million
Coupon redemption cost per unit = 40 cents
Total potential liability from coupons = $60 million (150 million x $0.40)
Probability of occurrence = 70%
Estimated redeemable liability = $42 million ($60 million x 70%)
Redeemed coupons in 2021 = 45 million or $18 million (45 million x $0.40)
Recognized contingent liability for 2021 = $24 million ($42 - $18 million)
Thus, General Product Inc.'s coupon liability as of December 31, 2021, is $24 million.
Learn more about coupon liabilities at brainly.com/question/17963028
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