136B, HW 8, #2; Please explain the steps!

The marketing department of Sandhill and Company has developed a strategy to increase sales. For every $100 of purchases made by a customer, the customer receives a $5 gift card with no expiration date. Sandhill assumes the redemption rate on the gift card is 90%. Sandhill has the following information: - Sales of $12,000,000 for 2025 - Gift card redemptions of $72,000 for 2025 - Gift card liability at December 31, 2024 of $60,000 What is the amount of the liability at December 31, 2025? Gift card liability, Dec. 31, 2025 \$