A new product introduced by Sunbound Promotions carries a two year warranty against defects. The estimated warranty costs related to dollar sales are as follows:

Year of sale (first year) ........3% Year after sale (second year) ......5%

Sales and actual warranty expenditures for the years ended December 31, 2018 and 2019 are as follows:

2018 Sales $ 800,000 and actual warranty expenditures $ 18,000

2019 Sales $ 1,000,000 and actural warranty expenditures $ 70,000

What amount should Sunbound report as its estimated liablility as of December 31, 2019?