2. During 2011, Stabler Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 3% in the year after sale, and 4% in the second year after sale. Sales subject to the warranty and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2011 2012 2013 400,000 1,000,000 1,400,000 $2,800,000 6,000 40,000 90.000 $136,000 What amount should Stabler report as a warranty expense for 2011, 2012, and 2013, and what amount should Stabler report as an estimated warranty liability at December 31, 2013