A car is sold for $15,000 on June I, 2005, with a one-year warranty on parts. Warranty expense is estimated at 1.5% of selling price at each calendar year-end. On March I, 2006, the car is returned for warranty repairs costing $135. The amount recorded as warranty expense on March I is

(a) $0;

(b) $60;

(c) $75;

(d) $135;

(e) $225.