Final answer:
The balance of the estimated warranty liability account can be calculated based on the beginning balance, total warranty expense, and warranty claims paid during the year.
Step-by-step explanation:
The balance of the estimated warranty liability account as of December 31 can be determined by subtracting the total warranty expense from the beginning balance of the account, and adding the amount of any warranty claims paid during the year.
Since the question does not provide the total warranty expense or the amount of warranty claims paid, we cannot determine the exact balance of the account. However, we can use the given information to calculate the beginning balance of the account.
The beginning balance of the estimated warranty liability account can be calculated by subtracting the reserves ($30) from the bonds ($50) and loans ($50), which gives us a beginning balance of $20.