A company sells a product that carries a 60-day unconditional warranty against product failure. At the beginning of the period, the warranty liability had a balance of $54,000. Based on historical experience, the company estimates that 4.0% of units sold each period will require repair at an average cost of $180 per unit. During the current period, the company sold 90,000 units and repaired 3,200 of those units. a. What amount of warranty expense must the company report in its current period income statement